A street light brightens a Wall Street sign outside the New York Stock Exchange, Oct. 3, 2022, in New York. The S&P 500 rose 12.82, or 0.3 per cent, to 4,567.46 and its highest close since early April 2022. The Dow Jones Industrial Average gained 26.83, or 0.1 per cent, to 35,438.07, and the Nasdaq composite climbed 85.69, or 0.6 per cent, to 14,144.56.General Electric helped lead the market with a 6.
Raytheon Technologies tumbled 10.2 per cent after saying accelerated removals and inspections are needed for some of its Pratt & Whitney aircraft engines to look for a rare condition in powder metal. That pushed the company to lower its forecast for how much cash it will generate this year, though it also reported stronger profit for the spring than analysts expected.
That "Magnificent 7" will need to deliver strong results to justify their huge gains for the year so far, as their stocks soared on on expectations they'll continue to deliver strong growth. Both Alphabet and Microsoft are up more than 38 per cent for the year so far. The wide expectation is for the Fed on Wednesday to announce another increase to interest rates, as it tries to wrestle high inflation under control. That would take the federal funds rate to a range of 5.25 per cent to 5.50 per cent, its highest level in two decades and up from virtually zero early last year.