US stocks steady: Wall Street hover near record highs; investors eye Fed decision, Donald Trump-Xi Jinping meeting

US stocks hovered around record levels on Tuesday as investors awaited key events, including the Federal Reserve’s policy decision and an upcoming meeting between President Donald Trump and Chinese President Xi Jinping.In morning trade, the S&P 500 rose 0.1 per cent, while the Dow Jones Industrial Average gained 190 points, or 0.4 per cent, and the Nasdaq Composite climbed 0.4 per cent. All three indexes closed at record highs on Monday. According to news agency AFP, the rally reflects market optimism that the Federal Reserve will announce another rate cut on Wednesday, a move widely anticipated by investors.“Markets have been on a tear in recent weeks, in part due to confidence that the Fed will further ease monetary policy,” Adam Sarhan of 50 Park Investments was quoted as saying by AFP, noting that traders will watch closely what Fed Chair Jerome Powell signals about future rate moves.On the corporate front, United Parcel Service (UPS) jumped 7.5 per cent after posting stronger-than-expected quarterly profit and revenue, while PayPal surged 10.6 per cent after announcing a quarterly dividend and a partnership allowing payments via OpenAI’s ChatGPT, as per news agency AP.Skyworks Solutions soared 15.8 per cent after revealing a $22 billion merger with Qorvo, under which Skyworks shareholders will own about 63 per cent of the new entity. Qorvo’s shares also rose nearly 13 per cent.Meanwhile, Royal Caribbean tumbled 8.4 per cent as its revenue fell short of expectations despite a profit beat, and homebuilder DR Horton slipped 2.5 per cent due to weaker quarterly results.Investors also digested Amazon’s move to cut 14,000 corporate jobs, about 4 per cent of its workforce, to streamline operations while ramping up spending on artificial intelligence.The 10-year Treasury yield edged down to 3.99 per cent from 4.01 per cent a day earlier, reported AP.In global markets, Japan’s Nikkei 225 fell 0.6 per cent from its record high, while South Korea’s Kospi slipped 0.8 per cent. Gold prices, which recently hit an all-time peak near $4,400 per ounce, have retreated toward $3,940, trimming annual gains to below 50 per cent.The Fed’s rate outlook and the outcome of Trump-Xi trade talks are expected to set the tone for the markets through the rest of the week.