The Dow Jones Industrial Average closed 0.4% higher, its sixth consecutive gain, as investors hoped for a pause in interest-rate hikes.
The CME Fed Watch Tool showed a 94.2% chance of a pause in rate hikes in Wednesday's Fed announcement. The odds went down after a milder inflation report today.
The S&P 500 gained 0.7% while the Nasdaq rose 0.8%. Volume on the NYSE and the Nasdaq was higher compared with the same time on Monday.
The small-cap Russell 2000 outperformed, adding 1.2%. The Innovator IBD 50 added 1.4% Tuesday.
Crude oil rose 3% to trade at $69.19 a barrel. Oil rose after China's central bank cut a key lending rate. The yield on the benchmark 10-year U.S. Treasury note rose 7 basis points to 3.84%.
Stocks Moving Today
Shares of Oracle surged in strong volume after the company announced earnings, but pared early gains to end almost flat. Shares rallied Monday after the company said it sees strong demand for cloud computing due to the demand for generative AI tools. Cloud and AI services are seeing "unprecedented demand," said CEO Safra Catz.
C3.ai surged 15% on Oracle's bullish outlook for generative AI.
Leisure services plays sailed higher. Royal Caribbean, which is on IBD Leaderboard, is now more than 25% above its 76.30 buy point, and investors who bought at that level can take profits.
Carnival rose into a profit zone after a Bank of America analyst's upgrade. Norwegian Cruise Line added to Monday's strong gains and is now extended from an 18.12 entry.
Celsius and Fluence Energy in the IBD 50 rose to new highs. Celsius is also on IBD Leaderboard. FLNC is extended from a buy point of 26.78, while Celsius is in a profit zone, according to IBD MarketSmith
Fed Decision On Tap; What Investors Need Now
Dow Jones Stocks In Focus
Dow Jones component Intel broke out past a buy point of 33.84. Also in the Dow, JPMorgan Chase continued to form a flat base with an entry at 143.37.
Elsewhere, United Airlines made it a six-day winning streak as it eyes a buy point of 55.04 in a cup base. The stock joined the IBD Leaderboard Watchlist Tuesday.
NetEase, the Chinese online gaming company, broke out of a flat base at a buy point of 94.99. In software, Ansys broke out of at 333.89 but the price and volume action was mediocre.
Marriott is approaching a buy point of 183.27 in a flat base.
The consumer price index rose 0.1% in May, lower than 0.2% Econoday estimates. On an annual basis, CPI slowed to a 4% increase, lower than estimates.
Also outside Dow Jones, GameStop broke out of a cup base at a buy point of 27. Shares closed slightly below that level.
Activist investor and new Chairman Ryan Cohen has purchased 443,842 more GME shares, raising his total stake to 12% just after the meme stock had a dismal quarter. Last week, it reported a loss of 14 cents per share and sales of $1.2 billion that showed a 10% decline from a year ago.
Shares of Tesla are in a profit zone from a 207.79 entry as the stock extended its win streak to a record 13 days.
Analog Devices is hovering close to a buy point of 193.14 from a double-bottom base.
Overstock.com rose to test the 200-day moving average. The e-commerce company made a $21.5 million bid for bankrupt Bed Bath & Beyond's intellectual assets.
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