U.S. stocks are rising as investors weigh chances of Fed rate hike

Investing.com -- U.S. stocks were rising on Tuesday after dropping in early trading as investors continued to weigh the odds of another interest rate increase by the Federal Reserve.

At 10:52 ET (14:52 GMT), the Dow Jones Industrial Average was up 59 points points or 0.2%, while the S&P 500 was up 0.3% and the NASDAQ Composite was also up 0.3%.

The Fed is due to meet next week to decide the next step as economic data show the economy is cooling but the job market remains tight. Futures traders have a 75% probability that the Fed will pause on another hike next week, while slightly more than half of traders see a quarter of a point hike coming after that in July.

The next reading of the consumer price index, this time for May, is due out on Tuesday, just as the Fed starts its two-day meeting.

Fed policymakers are currently in a quiet period ahead of the meeting but last week several of them hit the speech circuit to make the case for a pause.

The prospect of a halt to interest rate increases has lifted stocks in recent weeks, especially tech stocks, pushing the Nasdaq higher.

Coinbase Global, Inc. (NASDAQ:COIN) shares fell 14% after the Securities and Exchange Commission sued the crypto exchange for operating an unregistered broker and exchange. Just on Monday, the SEC sued Binance and its founder for securities violations.

Shares of Apple Inc. (NASDAQ:AAPL) dipped 0.5% after showing off its first major new product in a decade: a $3,499 mixed reality headset.

Thor Industries, Inc. (NYSE:THO) shares jumped 15% after the maker of recreational vehicles reported stronger-than-expected earnings and revenue and raised its guidance for the year.