US Stocks Near Record Highs Ahead of Fed Decision and Trump-Xi Meeting; Key Companies See Major Moves

US stock indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were trading near all-time highs on Tuesday, building on their record closes from Monday. Market sentiment is optimistic, largely due to expectations that the Federal Reserve will announce another interest rate cut at its upcoming meeting, signaling continued easing of monetary policy. Investors are keenly observing Fed Chair Jerome Powell for any hints about future rate adjustments.

On the corporate front, United Parcel Service (UPS) shares surged over 7.5% after reporting stronger-than-expected quarterly profit and revenue. PayPal saw a substantial jump of 10.6% following the announcement of its first quarterly dividend and a partnership enabling payments via OpenAI's ChatGPT. Skyworks Solutions experienced a significant rise of 15.8% on news of its $22 billion merger with Qorvo, whose shares also climbed nearly 13%.

In contrast, Royal Caribbean stock tumbled 8.4% as its revenue fell short of expectations, despite beating profit targets. Homebuilder DR Horton slipped 2.5% due to weaker quarterly results. Additionally, Amazon announced plans to cut 14,000 corporate jobs, approximately 4% of its workforce, as part of efforts to streamline operations and increase spending on artificial intelligence.

The 10-year Treasury yield saw a slight dip. Globally, Japan's Nikkei 225 and South Korea's Kospi experienced declines from their record highs, and gold prices retreated from recent peaks.

Impact This news is significant for global market direction, with the Federal Reserve's rate outlook and the outcome of the US-China trade talks expected to set the tone for the markets through the rest of the week. The specific corporate developments also provide insights into sector performance and strategic shifts. Impact Rating: 7/10

Difficult Terms: * **Federal Reserve**: The central bank of the United States, responsible for setting monetary policy and overseeing the banking system. * **Rate Cut**: A reduction in the central bank's benchmark interest rate, designed to make borrowing cheaper and stimulate economic activity. * **Monetary Policy**: Actions taken by a central bank to manage the money supply and credit conditions to influence macroeconomic goals like inflation and economic growth. * **Quarterly Profit**: The net income a company earns over a three-month financial period. * **Quarterly Revenue**: The total income a company generates from its primary business operations during a three-month financial period. * **Quarterly Dividend**: A payment made by a corporation to its shareholders, distributed every three months, usually as a portion of its profits. * **Merger**: The combination of two or more companies into a single new entity. * **Corporate Jobs**: Positions within a company, typically administrative, managerial, or professional roles, as distinct from frontline operational roles. * **Artificial Intelligence (AI)**: The simulation of human intelligence processes by machines, especially computer systems, including learning, problem-solving, and decision-making.