Investing.com - U.S. stock prices rose on Tuesday on news U.S. federal deficits are set to narrow, while positive service-sector data out of Europe also enticed investors out of the safety of the dollar and into risk assets such as stocks.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.71%, the S&P 500 index was up 1.04%, while the Nasdaq Composite index rose 1.29%.
In Europe earlier, the Markit research group reported that the eurozone services purchasing managers’ index rose to 48.6 in January, beating market expectations for a reading of 48.3.
Elsewhere, the European Central Bank is scheduled to meet later this week to analyze policy, and expectations that monetary authorities will make no changes bolstered the euro and weakened the dollar, which gave investor reason to go long on U.S. equities.
Stock markets shrugged off weak eurozone retail sales figures.
Eurozone retail sales dropped 0.8% in December, worse than market calls for a 0.5% contraction.
Meanwhile in the U.S., the Congressional Budget Office reported earlier that the federal budget deficit should hit USD845 billion this year, the first time since President Barack Obama came to office that the figure didn't exceed USD1 trillion.
Also in the U.S., the Institute of Supply Management reported that its non-manufacturing purchasing managers' index fell to 55.2 in January from 55.7 in December, in line with expectations.
Furthermore, U.S. earnings continue to please investors, which fueled Tuesday's rally even more.
Leading Dow Jones Industrial Average performers included UnitedHealth Group, up 3.66%, Bank of America, up 3.48%, and Hewlett-Packard, up 2.60%.
The Dow Jones Industrial Average's worst performers included IBM, down 0.52%, United Technologies, down 0.31%, and Home Depot, up 0.06%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.99%, France's CAC 40 rose 0.95%, while Germany's DAX 30 finished up 0.35%. Meanwhile, in the U.K. the FTSE 100 finished up 0.58%.
On Wednesday, the U.S. is to release government data on crude oil inventories.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.71%, the S&P 500 index was up 1.04%, while the Nasdaq Composite index rose 1.29%.
In Europe earlier, the Markit research group reported that the eurozone services purchasing managers’ index rose to 48.6 in January, beating market expectations for a reading of 48.3.
Elsewhere, the European Central Bank is scheduled to meet later this week to analyze policy, and expectations that monetary authorities will make no changes bolstered the euro and weakened the dollar, which gave investor reason to go long on U.S. equities.
Stock markets shrugged off weak eurozone retail sales figures.
Eurozone retail sales dropped 0.8% in December, worse than market calls for a 0.5% contraction.
Meanwhile in the U.S., the Congressional Budget Office reported earlier that the federal budget deficit should hit USD845 billion this year, the first time since President Barack Obama came to office that the figure didn't exceed USD1 trillion.
Also in the U.S., the Institute of Supply Management reported that its non-manufacturing purchasing managers' index fell to 55.2 in January from 55.7 in December, in line with expectations.
Furthermore, U.S. earnings continue to please investors, which fueled Tuesday's rally even more.
Leading Dow Jones Industrial Average performers included UnitedHealth Group, up 3.66%, Bank of America, up 3.48%, and Hewlett-Packard, up 2.60%.
The Dow Jones Industrial Average's worst performers included IBM, down 0.52%, United Technologies, down 0.31%, and Home Depot, up 0.06%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.99%, France's CAC 40 rose 0.95%, while Germany's DAX 30 finished up 0.35%. Meanwhile, in the U.K. the FTSE 100 finished up 0.58%.
On Wednesday, the U.S. is to release government data on crude oil inventories.