U.S. stocks: S&P 500 equal-weighted index hits new highs, broad gains outweigh chip stocks sell-off
The S&P 500 rose on Tuesday as oil prices continued to fall. Despite the sell-off in chip stocks, broad gains pushed the S&P 500 equally-weighted index to a record high. The S&P 500 closed up 0.2%; tech-heavy stocks The 100 index fell 1%, paring intraday losses that had been close to a correction. The Philadelphia Semiconductor Index fell 4.5% and fell as much as 6.5% during the session. Among the S&P 500 stocks, it was among the top losers. Torsten Slok, chief economist at Apollo Global Management, said that expected spending growth by hyperscale cloud service providers exceeds expected cash flow growth, exacerbating investors' concerns about when capital expenditures can be converted into profits. First New York portfolio manager Vikram Rai said the divergence between the S&P 500 Index and the Nasdaq 100 Index reflects the rotation of funds from chip stocks to other sectors. Traders await earnings from major technology companies later this week. Shares rose ahead of the company and Meta Platforms due to report results after U.S. stocks close on Wednesday. Investors will also turn their attention to Wednesday's Federal Reserve interest rate decision. “Tomorrow is going to be a very, very worrying day,” First New York’s Rai said, saying Fed Chairman Warsh “faces the most difficult boss in the world” and must make tough decisions. Analysts said the probability of the Fed raising interest rates may be lower than the roughly 30% currently priced in by the market because "inflation, while still high, does not appear to be at risk of a sharp outbreak." As of the close, the S&P 500 index rose 0.2% to 7,428.78 points; The Industrial Average rose 1% to 52,747.32 points; The Nasdaq Composite Index fell 0.2% to 24,876.91 points; The Nasdaq 100 index fell 1% to 27763.13 points; The Russell 2000 index rose 0.2% to 2,953.8 points.