US stocks nudged higher on Tuesday as investors awaited more key earnings from the likes of Microsoft and the Federal Reserve started its rate-setting policy meeting. The S&P 500 rose 0.2% while the tech-heavy Nasdaq Composite hovered near the flatline, on the heels of a lackluster session for the major gauges. The Dow Jones Industrial Average rose 0.5%.
Wall Street is watching closely for any sign that massive AI investments are starting to pay off. It's especially in focus after July's volatile ride for stocks underlined the risks of the AI trade, as investors rotated out of Big Tech and into small caps. Pharmaceuticals Merck and Pfizer posted quarterly results prior to the market open, as well as consumer products giant Procter & Gamble . Coffee-shop chain Starbucks will report after the market close, as will chip giant AMD .
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