U.S. stocks were rising as Microsoft and Alphabet kick off tech earnings

Investing.com -- U.S. stocks were rising ahead of quarterly earnings reports from Microsoft Corporation (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), which could shed more light on the state of business spending on big tech.

At 11:12 ET (15:12 GMT) Dow Jones Industrial Average was up 4 points, or flat, while the S&P 500 was up 0.1% and the NASDAQ Composite was up 0.4%.

Tech sector boosted by AI, hopes about Fed rate hikes

The two tech giants are expected to report strength in their cloud businesses as businesses spend on tech. Analysts also hope to see an improvement in digital advertising, and they want to hear more about AI spending and strategy.

Investors have pushed the Nasdaq up 34% so far this year on the promise of AI technology to be the next transformative trend in the sector.

Tech stocks are also getting a boost from expectations that the Federal Reserve is nearing the end of its interest rate increases, though it is expected to announce another quarter of a percentage point hike when its two-day meeting ends tomorrow.

Fed kicks off two-day meeting

Investors will be listening closely to what Fed Chair Jerome Powell says during his press conference tomorrow for clues on the Fed’s next rate move later this year. Futures traders are divided on whether the Fed will end its rate hikes after this month or raise another quarter of a point at one of its fall meetings.

Consumer confidence rose to 117, more than the 111.8 expected and above the 110.1 recorded in a previous reading. Other economic data this week includes reports on gross domestic product for the second quarter, initial jobless claims, and the personal consumption expenditures index, a key inflation gauge.

General Electric raises profit outlook

In other stock moves on Tuesday, General Electric Company (NYSE:GE) was rising 5.9% after it raised its adjusted profit outlook. It is forecasting solid demand from airlines for engine parts and other services.

Shares of Verizon Communications Inc (NYSE:VZ) rose 0.8% after the telecommunications giant said wireless subscriber numbers rose more than expected as more people upgrade their devices. 

3M Company (NYSE:MMM) shares rose 5.4% after it raised its annual adjusted profit forecast.