U.S. stocks opened modestly higher on Tuesday, erasing some of the prior session’s losses as a closely watched data point showed wage growth was slightly less robust than expected in the fourth quarter. Investors are also looking ahead to Wednesday’s Federal Reserve meeting, where a rate hike of 25 basis points is expected. The S&P 500 SPX, +0.40% gained 6 points, or 0.
2%, to 4,023, while the Dow Jones Industrial Average DJIA, +0.22% advanced 70 points, or 0.2%, to 33,787. The Nasdaq Composite COMP, +0.60% advanced 22 points, or 0.2%, to 11,416. The employment cost index, released Tuesday ahead of the open, showed wage growth slowed at the end of 2022 for the third quarter in a row, although worker compensation still rose a sharp 1%. Economists polled by the Wall Street Journal had anticipated a rise of 1.1%.
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