Investing.com – U.S. stocks closed higher on Tuesday, after the release of upbeat U.S trade data ahead of a key meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The latest batch of U.S. economic trade data, added to the narrative of a stronger U.S. economy, as the U.S. trade deficit narrowed by more than expected in February.
The Commerce Department said Tuesday, the trade deficit shrank by 9.6% to $43.6 billion, while January's trade deficit was revised down to $48.2 billion from $48.5 billion.
Economists had forecast the trade gap contracting to $44.8 billion in February.
Meanwhile, investors looked ahead to the meeting on Thursday between U.S. President Donald Trump and Chinese President Xi Jinping.
President Trump last week, raised expectations that the meeting could be unproductive, when he tweeted the meeting will be "very difficult", given the many economic and security issues that divide the U.S. and China.
Meanwhile, Richmond Federal Reserve President Jeffrey Lacker announced his immediate resignation Tuesday, admitting that he discussed sensitive information with an analyst regarding the Federal Reserve’s plans for economic stimulus.
In corporate news, Nvidia slumped to a three-week low, after investment firm Pacific Crest lowered its rating on Nvidia to ‘underweight’, from Sector Weight, amid worries of saturation in the desktop PC market.
The Dow Jones Industrial Average closed 0.19% higher at 20,689. The S&P 500 gained 0.06% and the Nasdaq Composite closed 0.07% higher at 5,898.61.
The top S&P 500 gainers Staples Inc (NASDAQ:SPLS) up 9.8%, and Chesapeake Energy Corporation (NYSE:CHK) up 6.8%, while Vertex Pharmaceuticals Inc (NASDAQ:VRTX) added 4.5%.
Acuity Brands Inc (NYSE:AYI) down 14.8%, NVIDIA Corporation (NASDAQ:NVDA) down 7% and Nordstrom Inc (NYSE:JWN) down 5.5%, were among the worst S&P 500 performers of the session.