The benchmark Dow Jones Industrial Average (DJIA) ended up at its highest level on five years on Tuesday ahead of crucial policy announcements from the United States and Germany.
Shares in sectors such as financial services, industrials and energy led the gains in the market. International Business Machines Corp.(NYSE:IBM ) for instance, rose 1.15 percent to $203.27, while that of Caterpillar Inc.(NYSE:CAT ) rose 1.72 percent to $88.60.
The U.S. Federal Reserve is expected to make some announcements on Thursday to support low interest rates while on Wednesday Germany's apex court will decide on the legality of the European Central Bank's bailout fund.
More measures are expected from central banks of countries which are in the grip of a slowdown.
The NASDAQ Composite(INDEXNASDAQ:.IXIC) erased most of its gains in the afternoon as shares of Apple dropped in heavy volume. The stock slipped 0.32 percent to $660.59.
Economists forecast a 60 percent chance the U.S. central bank will announce another round of quantitative easing at the end of its two-day meeting, Reuters reported.
Disappointing U.S. August jobs data released last Friday bolstered that view.
"I do expect the Fed to (announce) an additional quantitative easing program. I don't think it's a good idea. I don't think it's warranted," Jamie Cox, managing partner of Harris Financial Group told Reuters.
The Dow Jones industrial average ended up 69.07 points, or 0.52 percent, to 13,323.36. The Standard & Poor's 500 Index closed up 4.48 points, or 0.31 percent, to 1,433.56. The Nasdaq Composite Index gained 0.50 point, or 0.02 percent, to 3,104.53.
Apple Inc.(NASDAQ:AAPL) shares ended lower after early gains as investors braces for the key event on Wednesday, where the world’s largest company is expected to introduce its another revolutionary new version of iPhone 5. There are lots of expectation from the company’s event and major analysts are bullish on the stock with several being raised their price target on the stock discounting the new iPhone.
Nokia Corporation (ADR)(NYSE:NOK) bounced back strongly with a gain of 6% as Nokia Siemens Network, mobile network equipment maker, is in discussions with several companies to sell its business support systems unit as it seeks to do away with some product lines and devote focus on mobile broadband.
Cell Therapeutics Inc(NASDAQ:CTIC) was the biggest gainer on the healthcare sector on news that the company has launched its recently approved oncology drug Pixuvri in the EU. Pixuvri was approved by EU regulators in May for the treatment of aggressive B-cell non-Hodgkin lymphoma, or NHL.
Sunesis Pharmaceuticals, Inc.(NASDAQ:SNSS) bounced back nicely and rose 32% after positive news regarding a late-stage trial of one of the company’s drugs.
Coal stocks continued to gain on expectation of strong recovery in the sector with Alpha Natural Resources, Inc.(NYSE:ANR) added 7.66% and Peabody Energy Corporation(NYSE:BTU) rose 2.70%.
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