Stocks Rise Again But Fed Remains Hawkish as Exxon Buys Pioneer for $59.5B

Equity markets rose again on Tuesday, led by bank, semiconductor, and small cap stocks. However, trading volumes were lower than last week, so a definitive trend change is not confirmed yet.

Several Fed officials reiterated a less hawkish monetary policy stance, but Fed Governor Michelle Bowman insisted rates may still need to rise further.

Exxon Mobil agreed to acquire Pioneer Natural Resources for $59.5B, more than doubling Exxon's Permian Basin presence.

Economists warned higher rates could tip the economy into recession, though it's not the base case yet.

Key economic data due today includes PPI inflation figures and the FOMC meeting minutes. Earnings reports are light.