S&P 500 and Nasdaq hit new highs as the market watches Fed's new policy

On Tuesday,Futures account opening the S&P 500 and Nasdaq indices closed at record highs for the second consecutive day, driven mainly by a more than 7% rise in Apple's stock. Investors are also awaiting consumer price data and the Federal Reserve's policy announcement.

Apple's stock surged 7.3% to a record high, providing the biggest boost to the S&P 500 and Nasdaq indices after a decline in the previous trading session.

At the annual developers conference that started on Monday, Apple unveiled new AI features designed to enhance the appeal of its devices, including an improved Siri virtual assistant capable of answering more types of questions and completing more complex tasks than before.

The S&P 500 technology index rose 1.7%, also reaching a record closing high.

The Consumer Price Index report will be released before the market opens on Wednesday, and the U.S. central bank's policy announcement will be made later the same day.

The Federal Reserve is expected to keep interest rates unchanged but will release its latest economic forecasts and the "dot plot," which shows policymakers' expectations for interest rates this year and in the longer term.

Oliver Pursche, Senior Vice President and advisor at Wealthspire Advisors, said, "Despite the unease, data and consumer actions continue to point to economic resilience, which generally indicates an overall bullish outlook."

The Dow Jones Industrial Average fell 120.62 points, or 0.31%, to 38,747.42, the S&P 500 gained 14.53 points, or 0.27%, to 5,375.32, and the Nasdaq Composite climbed 151.02 points, or 0.88%, to 17,343.55.

The U.S. monthly employment report released last Friday was stronger than expected. According to CME's FedWatch tool, market expectations for the Federal Reserve's first rate cut in September have decreased, now estimating about a 50% chance.

General Motors' stock rose 1.35% after it announced a $6 billion stock buyback plan. GM also lowered its annual electric vehicle production forecast.

Oracle's stock rose 8% after posting its quarterly earnings, following a 0.5% decline in regular trading.

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