Wall Street Rises on Fed Rate Cut Prospects Amid AI Export Debates

U.S. stock indexes rose slightly as markets anticipated a Federal Reserve interest rate cut, while assessing the impact of AI chip export policies to China. Despite inflation, a rate cut is expected, alongside implications for the labor market and tech sector. Market reactions were mixed, influencing sectors differently.

On Tuesday, Wall Street's major stock indexes saw modest gains as investors remained hopeful about a likely interest rate cut by the Federal Reserve while also evaluating potential changes in U.S. AI chip export policies to China.

The Federal Reserve's policy meeting, which began on Tuesday, is set to decide whether to reduce borrowing costs, despite inflation concerns above the Fed's target. Mixed signals have emerged from policymakers about future plans, balancing inflation risks against labor market health.

Investor focus also shifted to corporate spending on AI infrastructure and ongoing tech sector developments, such as Nvidia's limited AI chip exports to China and their market implications. The S&P 500 and other indexes reacted variably, influenced by these developments and broader economic indicators.

(With inputs from agencies.)