Big Stocks Are Rising: Record Expectations Are Increasing

American stocks rose on Tuesday, targeting new record highs as investors awaited the Federal Reserve meeting, spurred by the latest earnings reports.

The Dow Jones Industrial Average (^DJI) and the technology-heavy Nasdaq Composite Index (^IXIC) both saw an almost 0.7% increase. The S&P 500 (^GSPC) closed above 6,800, gaining 0.3%. Stocks closed at all-time highs amid rising hopes for a U.S.-China trade agreement.

Nvidia (NVDA) made market-moving statements with CEO Jensen Huang at the GTC event. Shares reached daily highs after Huang noted significant advancements in the artificial intelligence sector.

On Tuesday, mega-cap technology companies including Alphabet (GOOG), Apple (AAPL), Meta (META), Amazon (AMZN), and Microsoft (MSFT) entered the proving phase. Notably, Amazon (AMZN) announced its third-quarter results and revealed plans to lay off 14,000 workers.

The earnings season is bustling; reports from major companies such as Visa (V), UnitedHealth (UNH), UPS (UPS), and PayPal (PYPL) are drawing attention. PayPal saw a rise of more than 14% after exceeding earnings forecasts and establishing a new partnership with OpenAI.

The Federal Reserve has begun a two-day policy meeting, with investors anticipating a second interest rate cut from Wednesday's meeting. Clues regarding a potential rate cut in December are expected from Fed Chair Jerome Powell.

On another front, Trump signed rare earth and trade agreements with Japan, laying the groundwork for an important meeting with Chinese President Xi.

Nvidia ended the trading day up more than 2% after announcing joint projects with the government and new investments. CEO Huang stated that the artificial intelligence industry has 'turned a corner.'

Wayfair (W) gained over 20% after announcing its third-quarter results. Qualcomm (QCOM), on the other hand, retraced some of its gains, dropping 3%. The value of Apple (AAPL) shares was traded above $4 trillion.

Amazon announced it would reduce its workforce by 14%; this news is being closely monitored by investors.