Dow edges to record as tech, energy shares retreat

Stock futures edged higher on Tuesday with big tech names leading the early gains

Stock futures edged higher on Tuesday with big tech names leading the early gains

But some investors anxious about the Fed's hawkish tone and that concerns about rate hikes were being reflected in the tech sector, which has led the S&P 500's almost 9-per-cent rally this year.

The Nasdaq composite advanced 44.90 points, or 0.7 percent, to 6,220.37.

In morning trade, The Dow Jones Industrial Average was up 54.38 points, or 0.26 per cent, at 21,290.05, the S&P 500 was up 7.57 points, or 0.31 per cent, at 2,436.96 and the Nasdaq Composite was up 47.48 points, or 0.77 per cent, at 6,222.95.

Shares of Bank of America, Wells Fargo and JPMorgan were up about 1 per cent. Goldman Sachs 1.5 per cent gain was the driver behind the Dow's record intraday high.

While traders continued to see a more than 93 percent chance for the Fed to raise rates at the end of the two-day meeting on Wednesday, they dialled back the odds of a third hike this year.

The S&P 500 closed higher, up 0.45% at 2,440.33.

The S&P 500 financials sector dropped 0.9 percent after the release of weaker-than-expected U.S. CPI and retail sales data.

Shares of General Electric rose 3.8 percent to $29 after the company said Jeff Immelt would retire as chief executive and would be replaced by John Flannery, the head of GE Healthcare, ending a years-long succession plan.

Despite the flailing leadership in tech stocks, Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin, said he is not too anxious about it becoming a broader market selloff. The FTSE 100 is down over ten at the time of writing, while sterling is 0.38% lower aginst the dollar. Materials .SPLRCM were the top gaining sector, rising 0.9 percent.

Futures for the Dow Jones industrial average swung up 0.2% above fair value as the Dow looks to build on the record high set on Tuesday. Clancy is now the CFO of Biogen (BIIB). "That's not necessarily a bullish omen because when markets are at tops, people want to stay fully invested", said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. The VIX Volatility Index was lower for the day at 10.51 for a loss of -0.95 points or -8.29%.

The euro rose back to $1.1220 in the currency markets where anticipation is also building ahead of Wednesday's conclusion of a two-day meeting of the U.S. Federal Reserve.

Benchmark 10-year Treasuries were last down 3/32 in price to yield 2.211 percent, from a yield of 2.199 percent late on Friday.

Advancing issues barely outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.37-to-1 ratio favored decliners.

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