Stocks edged up following a tumultuous day of trading on Tuesday, as Wall Street awaits the Federal Reserve’s next policy meeting on Wednesday to see how quickly it will hike interest rates.

Also Read| Trade Setup: Top 15 things to know before market opens on May 4, 2022

After briefly falling into the red early in the day, the S&P 500 finished 0.5% higher. The Dow Jones Industrial Average gained 0.5%, while the Nasdaq gained 0.2%.

Also Read| US Stock Market: DJIA, S&P500 and Nasdaq turns green in early trade on Tuesday

Banks and other financial firms aided the market’s rise. Energy stocks rose sharply as a result of positive quarterly results released from numerous oil and gas firms. Retailers and other businesses that rely on direct consumer spending fell behind the overall market.

Also Read| US Premarket: Chegg, Logitech and other stocks making biggest moves

Bond yields were mixed. The yield on the 10-year Treasury fell to 2.97% from 2.99% late Monday. Treasury yields have been generally rising all year as investors prepare for higher interest rates, which will make borrowing money more expensive.

Also Read| Adani Wilmar acquires rice brand Kohinoor to strengthen market position

The Fed is expected to raise its benchmark rate by twice the usual amount this week as it steps up its fight against inflation, which is at a four-decade high.

The S&P 500 rose 20.10 points to 4,175.48. The Dow gained 67.29 points to 33,128.79. The Nasdaq rose 27.74 points to 12,563.76.

Also Read| FabIndia, Syrma SGS, 5 others get SEBI approval to float IPOs

Technology stocks held on to slight gains after a mixed morning. Many companies in the sector have pricey stock values and therefore have more force in pushing the major indexes up or down. Apple rose 1%.

Smaller company stocks outpaced the broader market. The Russell 2000 added 15.94 points, or 0.9%, to 1,898.86.

Also Read| Tata Steel Q4 results: Net profit jumps 37% YoY to Rs 9,835 crore

The market’s moderate gains follow a late-day rally on Monday that gave indexes a positive start to May after a brutal April.

Investors have been closely reviewing the latest round of company earnings to get more details on how inflation is impacting business and consumer activity.

Also Read| Electricity giant NTPC rushes back to coal as India’s energy crisis worsens

Household goods giant Clorox rose 3% after reporting solid quarterly profits, but it also cut its profit forecast for the year because of higher costs. Starbucks will report its results later Tuesday. CVS Health will report its financial results on Wednesday.

Also Read| AGEL gets nod for Rs 3,850 crore investment by Green Energy Investment Holding RSC

BP jumped 8% after reporting its highest quarterly profit in more than a decade thanks to surging oil and gas prices. Devon Energy rose 10.2% and Diamondback Energy gained 6.8% after they reported strong financial results.