Investing.com - U.S. stocks finished Tuesday higher after two high-ranking Federal Reserve authorities suggested that stimulus programs will likely stay in place for now.
Stimulus measures, such as the Fed's monthly USD85 billion bond-buying program, flood the economy with liquidity to keep interest rates low and encourage investing and hiring, sending stocks rising as a side effect.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.34%, the S&P 500 index ended up 0.17%, while the Nasdaq Composite index rose 0.16%.
Earlier Tuesday, St. Louis Fed president James Bullard and New York Fed president William Dudley suggested that the U.S. central bank is not ready to scale back stimulus measures, especially the bond-buying program, given that the economy still needs monetary support until the labor market displays more robust recovery.
Stocks applauded the news though in a cautious manner.
On Wednesday, Federal Reserve Chairman Ben Bernanke will testify in Congress, and many investors remained on the sidelines until more definitive steering currents move the stock market.
A lack of major economic indicators hitting the wire also allowed for subdued trading.
Leading Dow Jones Industrial Average performers included Merck, up 4.73%, Home Depot, up 2.55%, and JPMorgan, up 1.42%.
The Dow Jones Industrial Average's worst performers included Travelers Companies, down 2.22%, Verizon Communications, down 1.27%, and AT&T, down 0.86%.
European indices, meanwhile, finished largely higher.
After the close of European trade, the EURO STOXX 50 fell 0.10%, France's CAC 40 rose 0.33%, while Germany's DAX 30 finished up 0.19%. Meanwhile, in the U.K. the FTSE 100 finished up 0.71%.
On Wednesday, all eyes will be on Bernanke and his appearance in Congress.
Elsewhere, the U.S. is to release data on existing home sales, a leading indicator of economic health, while the Fed is to publish the minutes of its most recent policy-setting meeting.
Stimulus measures, such as the Fed's monthly USD85 billion bond-buying program, flood the economy with liquidity to keep interest rates low and encourage investing and hiring, sending stocks rising as a side effect.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.34%, the S&P 500 index ended up 0.17%, while the Nasdaq Composite index rose 0.16%.
Earlier Tuesday, St. Louis Fed president James Bullard and New York Fed president William Dudley suggested that the U.S. central bank is not ready to scale back stimulus measures, especially the bond-buying program, given that the economy still needs monetary support until the labor market displays more robust recovery.
Stocks applauded the news though in a cautious manner.
On Wednesday, Federal Reserve Chairman Ben Bernanke will testify in Congress, and many investors remained on the sidelines until more definitive steering currents move the stock market.
A lack of major economic indicators hitting the wire also allowed for subdued trading.
Leading Dow Jones Industrial Average performers included Merck, up 4.73%, Home Depot, up 2.55%, and JPMorgan, up 1.42%.
The Dow Jones Industrial Average's worst performers included Travelers Companies, down 2.22%, Verizon Communications, down 1.27%, and AT&T, down 0.86%.
European indices, meanwhile, finished largely higher.
After the close of European trade, the EURO STOXX 50 fell 0.10%, France's CAC 40 rose 0.33%, while Germany's DAX 30 finished up 0.19%. Meanwhile, in the U.K. the FTSE 100 finished up 0.71%.
On Wednesday, all eyes will be on Bernanke and his appearance in Congress.
Elsewhere, the U.S. is to release data on existing home sales, a leading indicator of economic health, while the Fed is to publish the minutes of its most recent policy-setting meeting.