Investing.com -- U.S. stocks rallied on Tuesday reversing losses from one session earlier, ahead of Wednesday's quarterly press conference from the Federal Open Market Committee upon the completion of its June meeting.
While it is unlikely that the Federal Reserve will lift interest rates for the first time in nearly a decade, Fed chair Janet Yellen could provide hints on whether the U.S. Central Bank will raise its benchmark Fed Funds Rate following its meeting in September. The Dow Jones Industrial Average and the NASDAQ Composite index each rose by more than 0.5% to snap a two-session skid, while all 10 sectors on the S&P 500 Composite index closed in the green on a bullish day for U.S. stocks.
Bolstered by M&A rumors involving UnitedHealth Group Incorporated (NYSE:UNH), the Dow gained 113.31 or 0.64% to 17,904.48 moving back into positive territory for the year. The NASDAQ, meanwhile, rose 25.58 or 0.51% to 5,055.55, led by a strong session from Microsoft Corporation (NASDAQ:MSFT). The S&P 500 also snapped a two-day losing streak, as it gained 11.86 or 0.57% to close at 2,096.29. Stocks in the Consumer Goods, Energy and Telecommunications sectors led, each gaining more than 0.7% on the session.
UnitedHealth, one of the largest health carriers in the nation, saw its shares spike 2.42 or 2.03% to 121.40 on Tuesday after reports surfaced that it could be considering a merger with Cigna Corporation (NYSE:CI) and Aetna Inc (NYSE:AET). Cigna, a Connecticut-based provider with approximately 35,000 employees and $53 billion in assets, saw it shares tick up 0.54 or 0.35% to 153.97. Shares in Aetna, another large managed health care company based in Connecticut, surged 3.96 or 3.27% to 124.97. As of 2013, Aetna had nearly $50 billion in assets. UnitedHealth closed the session as the top performer on the Dow. The worst performer was Caterpillar Inc (NYSE:CAT), which lost 0.63 or 0.72% to 86.50.
Humana Inc (NYSE:HUM) shares, meanwhile, plunged 6.93 or 3.35% to 199.65, amid increased possibility that it could be left out of the merger sweepstakes among major health care providers. Humana, a Louisville-based insurance company, ended the day as the worst performer on the S&P 500.
The biggest gainer on the S&P 500 was Perrigo Company after the Wall Street Journal reported that Abbott Laboratories (NYSE:ABT) intends to vote in favor of Mylan (NASDAQ:MYL)'s acquisition of the Dublin-based pharmaceutical company. Abbott owns a nearly 15% stake in Mylan. Perrigo jumped 7.93 or 4.33% on Tuesday to close at 191.23. Humana finished just below Mylan, which lost 1.53 or 2.07% to 72.07.
Mylan also finished as the worst performer on the NASDAQ, just below Keurig Green Mountain Inc (NASDAQ:GMCR) which dipped 1.30 or 1.53% to 83.51. The top performer was Garmin Ltd (NASDAQ:GRMN), which gained 1.05 or 2.36% to 45.26.
Shares in Coty Inc (NYSE:COTY) soared more than 19% to 31.09 after it won an auction to acquire a large stake in hair-care, fragrance and cosmetics divisions from Procter & Gamble Company (NYSE:PG) in a deal reportedly valued at more than $10 billion.
On the New York Stock Exchange, advancers outnumbered decliners by a 1,972 to 1,136 margin.