“If the Fed was looking for data to point to say, ‘We’re going to pause in June,’ I think they got it today,” said Liz Young, head of investment strategy at SoFi in New York.
Traders have priced in a 93c-percent hance that the U.S. central bank will hold interest rates at the 5-5.25 percent range on Wednesday, and 62 percent odds of 25-basis-point hike in July, according to the CME Fedwatch tool. U.S.-listed shares of Chinese companies rose after China’s central bank lowered its short-term lending rate for the first time in 10 months. Alibaba Group gained 1.9 percent and JD.com jumped 3.5 percent.The Nasdaq gained 0.83 percent to 13,573.32 points, while Dow Jones Industrial Average rose 0.43 percent to 34,212.12 points.
Ten the 11 S&P 500 sector indexes rose, led by materials, up 2.33 percent, followed by a 1.16- percent gain in industrials.Intel Corp gained 2.5 percent after a report the chipmaker is in talks with SoftBank Group Corp’s Arm to be an anchor investor in its initial public offering.