By Yasin Ebrahim

Investing.com – The major averages closed at fresh record highs Tuesday, as investors digested mostly bullish quarterly results just as the Federal Reserve kicks off its two-day meeting.

At 4,630.65, the closing record, the index rose 0.3%. Closed at 36,052.63, the index was up 0.3% or 138.79 point. Nasdaq rose 0.34%, closing at 15,649.60.

Pfizer (NYSE:) rallied by 4% after raising its full-year guidance in the wake of strong demand for vaccines, which beat analysts’ expectations.

Investors are also waiting for news Tuesday night from the Centers for Disease Control and Prevention’s advisory panel regarding whether vaccine eligibility will be expanded to children 5 to 11 years old.

McKesson’s third quarter results, which also beat Wall Street estimates, were even better than expected. Additionally the drug distributor has raised its full year earnings guidance. This pushed its shares up by almost 6%.

Technology took a positive turn despite its slow start, and racked up more gains than the 1% movement in Apple (NASDAQ), Google-parent Alphabet(NASDAQ:), and Microsoft (NASDAQ).

The other big-cap tech markets were also mixed, with Amazon (NASDAQ) falling and Facebook-parent Meta Platforms being traded (NASDAQ).

Semiconductor was also driven higher by the strong results of On-Semiconductor, an Apple chip supplier.

ON Semiconductor Corporation (NASDAQ: ) surged by 4% after it released fourth quarter guidance regarding revenue and earnings. Wall Street was abuzz with positive comments after the upbeat results. Baird raised its price target from $60 to $75.

Shares Avis Budget (NASDAQ:) More than twice as many shares rose after stronger quarterly earnings drove Wall Street to give positive reviews. Morgan Stanley increased the stock’s target price to $140, from $110. Avis’s rise added over 1,000 points to its.

However, not all industries were affected by the collapse of Wall Street. Energy and consumer discretionary were the most damaged.

After Elon Musk, Tesla CEO, appeared to dampen some optimism about the Hertz order of 100,000 Teslas for its consumer discretionary stock, a drop in Tesla (NASDAQ) was a major drag on these stocks.

After the sector’s losses grew by more than 16%, Under Amour has reduced them after increasing its full-year guidance and reporting quarterly results that exceeded analysts’ expectations.

As oil prices and crude stocks fell, energy was more than 1% lower.

Meanwhile, the sank 2% in response to investors’ demands as the Fed began its two-day meeting.

Expect the Fed to announce the end of monthly bond purchases and to keep the interest rate at the same level. However, most attention will be paid to the Fed’s insights into inflation.

Investors are more concerned about downside than upside risks ahead of the Fed decision.

Melissa Brown, Qontigo’s managing director for applied research, stated that there is greater risk of equities falling into the Fed decision. Higher inflation can be attributed to monthly data that points to supply chain problems or people not wanting to accept the available jobs.

Despite this, the risk-aversion sentiment is not changing as investors shift from defensive markets to more risky sectors such as small caps and high-value growth stocks.

Brown said that investors are moving away from defensive styles or sectors and becoming bolder.