Investing.com - U.S. stocks closed sharply higher Tuesday, as investors eyed the Federal Reserve’s policy meeting with optimism the central bank will announce further easing measures, while political developments in Greece also remained in focus.
At the close of U.S. trade, the Dow Jones Industrial Average added 0.75%, the S&P 500 index advanced 0.98%, while the Nasdaq Composite index soared 1.19%.
The U.S. central bank was to begin its two-day policy meeting later Tuesday, amid growing expectations that policymakers may decide to implement more quantitative easing measures to shore up economic growth.
Market sentiment remained cautious however, as the yield on Spanish 10-year bonds eased but remained above the critical 7% threshold amid concerns that a EUR100 billion bailout agreed earlier this month may not be enough to overhaul the country’s ailing banking system.
Earlier Tuesday, Madrid saw short-term borrowing costs rise to euro-era highs at an auction of government bonds.
Computer technology giant Oracle rallied 5.22%, after reporting stronger-than-expected quarterly profit late Monday, releasing the results three days ahead of schedule after news of the pending departure of a senior sales executive fueled concerns that business was stagnating.
Meanwhile, Microsoft saw shares advance 2.18% after introducing its own line of tablets on Monday at a press event in Los Angeles. The move marked a major strategic shift for the software company in its battle to compete with Apple.
In the Internet sector, Groupon tumbled 3.77%, ahead of the company’s shareholder meeting, while Facebook shares declined 1.46%, even after brokerage Susquehanna reiterated its positive rating on the social-networking giant's shares.
Elsewhere, financial stocks were broadly higher. Shares in Bank of America surged 3.09%, as Julius Baer was said to be in talks with the lender about buying Merrill Lynch's non-U.S. wealth management unit, reported to be worth up to USD2 billion.
Citigroup jumped 2.69%, while Goldman Sachs and JP Morgan rallied 2.20% and 0.92% respectively. The New York Times reported earlier that Goldman Sachs has paid for most of former board member Rajat Gupta’s legal defense in an insider trading case that led to his conviction.
Among earnings, FedEx climbed 1.66% after the package delivery company handed in current quarter and full-year guidance that missed estimates. In addition, the company said it will be taking steps to reduce costs and improve efficiencies.
Discover Financial also jumped 1.61%, although the credit-card provider reported earnings that fell more than 10%.
Other stocks in focus included Adobe, due to report earnings after the closing bell.
Also Tuesday, official data showed that the number of U.S. building permits issued in May rose to 0.780 million, the highest level since September 2008, blowing past expectations for a rise to 0.728 million, while housing starts fell in May to 0.708 million from 0.744 million the previous month.
Elsewhere, leaders from the Group of 20 nations were to hold a second day of talks in Los Cabos, Mexico.
At the close of European trade, the EURO STOXX 50 soared 1.97%, France’s CAC 40 added 1.69%, while Germany’s DAX 30 climbed 1.84%.
Traders are awaiting the U.S. interest rate statement, Bernanke’s comments, as well as Britain’s MPC meeting minutes on Wednesday.
At the close of U.S. trade, the Dow Jones Industrial Average added 0.75%, the S&P 500 index advanced 0.98%, while the Nasdaq Composite index soared 1.19%.
The U.S. central bank was to begin its two-day policy meeting later Tuesday, amid growing expectations that policymakers may decide to implement more quantitative easing measures to shore up economic growth.
Market sentiment remained cautious however, as the yield on Spanish 10-year bonds eased but remained above the critical 7% threshold amid concerns that a EUR100 billion bailout agreed earlier this month may not be enough to overhaul the country’s ailing banking system.
Earlier Tuesday, Madrid saw short-term borrowing costs rise to euro-era highs at an auction of government bonds.
Computer technology giant Oracle rallied 5.22%, after reporting stronger-than-expected quarterly profit late Monday, releasing the results three days ahead of schedule after news of the pending departure of a senior sales executive fueled concerns that business was stagnating.
Meanwhile, Microsoft saw shares advance 2.18% after introducing its own line of tablets on Monday at a press event in Los Angeles. The move marked a major strategic shift for the software company in its battle to compete with Apple.
In the Internet sector, Groupon tumbled 3.77%, ahead of the company’s shareholder meeting, while Facebook shares declined 1.46%, even after brokerage Susquehanna reiterated its positive rating on the social-networking giant's shares.
Elsewhere, financial stocks were broadly higher. Shares in Bank of America surged 3.09%, as Julius Baer was said to be in talks with the lender about buying Merrill Lynch's non-U.S. wealth management unit, reported to be worth up to USD2 billion.
Citigroup jumped 2.69%, while Goldman Sachs and JP Morgan rallied 2.20% and 0.92% respectively. The New York Times reported earlier that Goldman Sachs has paid for most of former board member Rajat Gupta’s legal defense in an insider trading case that led to his conviction.
Among earnings, FedEx climbed 1.66% after the package delivery company handed in current quarter and full-year guidance that missed estimates. In addition, the company said it will be taking steps to reduce costs and improve efficiencies.
Discover Financial also jumped 1.61%, although the credit-card provider reported earnings that fell more than 10%.
Other stocks in focus included Adobe, due to report earnings after the closing bell.
Also Tuesday, official data showed that the number of U.S. building permits issued in May rose to 0.780 million, the highest level since September 2008, blowing past expectations for a rise to 0.728 million, while housing starts fell in May to 0.708 million from 0.744 million the previous month.
Elsewhere, leaders from the Group of 20 nations were to hold a second day of talks in Los Cabos, Mexico.
At the close of European trade, the EURO STOXX 50 soared 1.97%, France’s CAC 40 added 1.69%, while Germany’s DAX 30 climbed 1.84%.
Traders are awaiting the U.S. interest rate statement, Bernanke’s comments, as well as Britain’s MPC meeting minutes on Wednesday.