The US markets closed higher on Tuesday, with the S&P 500 and the Nasdaq closing at records, while the Dow industrials too posted gains, following better-than-expected results from a number of high-profile companies. The Federal Reserve’s two-day policy meeting is due to kick off Tuesday, with the resulting policy announcement due Wednesday. The Federal Reserve is widely expected to leave policy on hold. The market odds of a further rate hike this year have weakened, with the chances of a 25 basis point rise in December standing at under 40%.
On the economy front, consumer confidence rose in July to the second highest level in 16 years as Americans shrugged off all the drama in President Trump’s Washington and took heart in the best labor market in a decade. The consumer confidence index rose to 121.1 this month from 117.3 in June. The high level of confidence in July was only surpassed by a 124.9 reading in March just as the Trump administration was getting underway. Confidence soared after Trump was elected last November, especially among Republicans and independents. US home-price growth eased slightly but remained healthy as demand outweighs supply throughout the housing market. The S&P/Case-Shiller 20-city index rose 5.7% in the three-month period ending in May compared with a year ago, down from 5.8% in the prior period.
The Dow Jones Industrial Average added 100.26 points or 0.47 percent to 21,613.43, Nasdaq added 1.36 points or 0.02 percent to 6,412.17, while S&P 500 edged higher by 7.22 points or 0.29 percent to 2,477.13.