United States benchmark averages finished mixed on Tuesday (Wednesday AEST) as gains in Boeing and Coca-Cola offset weakness in semiconductor shares, with investors positioning for a busy week of Big Tech earnings and the Federal Reserve's latest interest rate decision.
The Dow Jones Industrial Average rose 537.2 points, or 1%, to 52,747.3. The S&P 500 gained 15.6 points, or 0.2%, to close at 7,428.8, while the Nasdaq Composite slipped 55.2 points, or 0.2%, to 24,876.9.
Markets have experienced heightened volatility this month amid concerns that technology giants including Alphabet, Microsoft and Amazon may be overspending on artificial intelligence infrastructure as they race to dominate the rapidly expanding sector.
Microsoft advanced 1.1% ahead of its quarterly earnings release on Wednesday (Thursday AEST), while Amazon edged 0.2% lower before reporting on Thursday (Friday AEST).
Apple gained 0.9%, pushing its market capitalisation above US$5 trillion for the first time. The iPhone maker is also scheduled to report quarterly earnings on Thursday (Friday AEST).
Outside the technology sector, Coca-Cola surged 5% after raising its full-year revenue and profit forecasts, while Boeing climbed 4.8% after reporting positive free cash flow, signalling that its turnaround strategy continues to gain traction.
Investors are also awaiting the Federal Reserve's policy announcement on Wednesday (Thursday AEST), with markets widely expecting policymakers to leave interest rates unchanged.
According to the CME Group FedWatch Tool, traders are pricing in a 79.5% probability that the Fed will hold rates steady, while assigning a 30.5% chance of a 25-basis-point rate increase at a subsequent meeting.
Persistently high borrowing costs remain a key risk for technology companies, particularly those investing heavily in AI infrastructure that increasingly relies on external financing.
On the bond markets, U.S. Treasury yields eased, with the benchmark 10-year yield falling 0.9% to 4.606%, while the two-year yield also declined 0.9% to 4.281%.
