Breaking News

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

22-Aug2018

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 close sharply lower on Monday

The US markets closed sharply lower on Monday with the Nasdaq falling to its lowest closing level in almost five months, as the biggest and most popular technology stocks plunged. Facebook and Apple led......

Asian markets exhibit mixed trend in early deals on Monday

Asian market indices are exhibiting mixed trend in early deals on Monday, amid the ongoing trade tensions between United States -China and on renewed anxiety about Brexit. The Japanese market is advancing......

US markets end choppy session mostly in green

The US markets ended choppy session mostly in green on Friday, with Dow Jones gaining around half a percent, as comments from President Donald Trump once again sparked hopes that a trade dispute with China......

Top News

View all news

Jumbo Finance gets shareholders' nod to increase borrowing limits up to Rs 30 crore

Jumbo Finance has received an approval to increase Borrowing Limits of the company up-to Rs 30 crore. The shareholders of the company at their meeting held on November 19, 2018, approved the same.Jumbo......

Alembic Pharma gets USFDA's nod for Vardenafil Hydrochloride Orally Disintegrating Tablets

Alembic Pharmaceuticals has received an approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Vardenafil Hydrochloride Orally Disintegrating Tablets,......

SRF expects total Rs 28 crore quantum of damage due to Cyclone GAJA

SRF is expecting a total Rs 28 crore quantum of damage caused, based on the initial assessment. The disruption of operations was due to Cyclone GAJA at the plant of Technical Textiles Business (Viralimalai)......