Breaking News

You are here » Indian-Commodity  :  International & World Stock  :  US markets close higher on Tuesday


US markets close higher on Tuesday

The US markets ended higher on Tuesday, registering a fourth straight gain on the back of optimism over US-China trade talks, even though President Donald Trump said he does not expect much progress from the talks, against the backdrop of a healthy economy and solid corporate earnings. The gains come on the day stocks tie a record for the longest bull market in history. The Standard & Poor's 500 stock index, a broad gauge of the US stock market, hit a fresh all-time high Tuesday, topping its prior January 26 peak of 2872.87. Besides, the most recent surge has been supported by strong corporate profits, helped by tax cuts and higher consumer spending. At the same time, corporations are spending more to buy back their own shares. So far, US companies have bought back $4.8 billion of their own shares each day this year, far above the previous record of $3.2 billion per day in 2007. Share buybacks help boost stock prices by reducing the number of outstanding shares traded in the market, which boosts per-share earnings and increases the ownership stake of current shareholders. 

Separately, Minutes from the Federal Reserve's last policy meeting are due out Wednesday and could provide insights into the latest thinking on rate hikes at a time when President Donald Trump has been stepping up criticism of tightening by the US central bank. The minutes will be followed by Fed chairman Jerome Powell's comments Friday to the annual conference of central bankers in Jackson Hole, Wyoming. The speech could take on some political overtones this year, after President Donald Trump again criticized Powell and the Fed. Trump said he was not thrilled with the Fed chairman, who he had appointed to replace Janet Yellen, and that he expected more help from the central bank. Trump said he would continue criticizing the Fed should it continue to raise short-term interest rates, which the central bank has indicated it will do at a steady clip.

Dow Jones Industrial Average rose 63.60 points or 0.25 percent to 25822.29, the S&P 500 gained 5.91 points or 0.21 percent to 2862.96 and Nasdaq was up by 38.17 points or 0.49 percent to 7859.17.

Related News

View all news

US markets end higher after Trump says China trade talks to continue

The US markets ended higher on Friday after key negotiators cast a positive glow on trade talks. US Secretary of Treasury Steven Mnuchin indicated that bilateral talks were constructive even though an......

US markets lower after US President claims China broke the deal

The US markets ended lower on Thursday as trade tensions ramped up after US President Donald Trump threatened tariff retaliation on China, which he claims broke the deal. Anxiety over the prospect of a......

US markets end mostly lower on Wednesday

The US markets ended mostly lower on Wednesday as worries over US-China trade talks lingered. A notice in the Federal Register formally laid the groundwork to raise tariffs on $200 billion of Chinese imports......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......