Investing.com — US stocks were higher as the Dow looked set to post a 10th consecutive day of gains led by tech and megacap stocks.

At 10:48 ET (14:48 GMT), it was up 66 points, or 0.2%, compared with gains of 0.3% and 0.2%.

economic outlook brightens

The technology-heavy Nasdaq is up 34.4% so far this year as optimism about artificial intelligence and expectations of the Federal Reserve’s interest rate halving have boosted investors’ bets on the sector.

Morgan Stanley raised its economic growth forecast for the year, citing a strong industrial sector and federal infrastructure spending, saying it expected the economy to soften.

Fed rates in focus

Futures traders expect the Fed to hike another quarter percentage point when it meets next week, and analysts will be listening to what Chairman Jerome Powell says during Wednesday’s press conference for additional clues about the Fed’s future moves.

The Fed seeks to bring inflation back to its 2% annual target, which has been an increasingly challenging task amid a resilient economy with a tight labor market. Next week will also include a report on the second quarter and the latest readings on inflation.

The latest reading on consumer sentiment is also due next Friday.

Traders are unsure where the Fed will go after next week’s meeting, with some seeing a pause in September and another rate hike in November.

American Express attitude remains the same

American Express Company (NYSE: ) shares fell 3.9% after record spending by card members, but it kept its full-year forecast unchanged.

(NYSE: AutoNation) stock fell 7% after the auto retailer’s sharp drop in used vehicle sales as well as a rise in expenses took a toll on better-than-expected quarterly sales.