July 27 (Reuters) – The tech giant Nasdaq rose nearly 3% on Wednesday, sending major benchmarks higher on Wall Street, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a later key US interest rate decision. from today.

Investors are widely expecting the US central bank to raise interest rates by another 75 basis points later on Wednesday, likely focusing on how deep the signs of economic slowdown are with policy makers. Read more

Money market traders were even betting on a one in four chance that the Fed would surprise markets with a one percentage point larger increase, according to CME Group’s Fedwatch tool.

The decision is scheduled for 2:00 PM ET (1800 GMT) followed by Federal Reserve Chairman Jerome Powell’s press conference half an hour later, where he is likely to make clear how the central bank views the recent economic environment.

“There is a balancing act that has to be done, if they do too much or too little, it will be painful, so they are in a difficult position,” said Andre Bakhos, managing director at New Vines Capital.

“The key is how they are said and how they give color about what is out there in the world, from the Federal Reserve’s point of view.”

Microsoft Corporation (MSFT.O) It jumped 5% after it forecast double-digit revenue growth this fiscal year on demand for cloud computing services. Read more

Alphabet Corporation (GOOGL.O) It added 7.3% as better-than-expected Google search ad sales eased concerns about a slowing ad market. Read more

S&P 500 الاتصالات Telecom Services Index (.SPLRCL) It added 4.3%, up for the first time in five days and led sectoral gains. technology stock (.SPLRCT) rose 3%.

The results led to higher growth stocks.

Meta Platforms Company (META.O) It rose 5.5% ahead of its quarterly report after markets closed, while Apple shares rose (AAPL.O) It was up 1.7% and that of Amazon.com Inc (AMZN.O) It gained 4.4% ahead of its results on Thursday.

Megacap’s growth stocks took a hit this year as the Federal Reserve aggressively raised interest rates to tame decades-high inflation. The future cash flows on which the valuation of these companies depends most are discounted when prices rise.

At 12:37 p.m. ET, the Dow Jones Industrial Average (.DJI) It was up 123.91 points, or 0.39%, to 31,885.45 points, and the Standard & Poor’s 500 (.SPX) The index rose 57.50 points, or 1.47%, to 3,978.55 points, and the Nasdaq Composite Index (nineteenth) It rose 314.00 points, or 2.72%, to 11,876.57 points.

PayPal Holdings Inc (PYPL.O) It jumped 11.4 per cent after a report that said activist investor Elliott Investment Management was building a stake in the financial technology giant. Read more

T-Mobile US Inc (TMUS.O) It added 4.1% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit forecasts. Read more

Advance issues outnumbered losers by 2.77 to 1 on the New York Stock Exchange and by 2.11 to 1 on the Nasdaq.

The S&P recorded a new 52-week high and 30 new lows, while the Nasdaq recorded 39 new highs and 78 new lows.

(Reporting by Shriyashi Sanyal, Sruthi Shankar and Aniruda Ghosh in Bengaluru; Editing by Sriraj Kalovila and Anil de Silva

Our criteria: Thomson Reuters Trust Principles.