The US markets ended higher on Tuesday as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to lower interest rates by another 25 basis points, with traders likely to pay closer attention to the accompanying statement for clues about the long-term outlook for rates. Besides, uncertainty about the US response to the recent attacks on Saudi Arabian oil facilities kept upside in check. President Donald Trump has indicated the US is prepared to respond militarily but has stopped short of definitively blaming Iran for the attacks. Trump said diplomacy has not been exhausted when it comes to Iran and would not rule out meeting with Iranian President Hassan Rouhani on the sidelines of the United Nations General Assembly next week.
On the economic front, the Fed released a report showing industrial production rebounded by much more than anticipated in the month of August. The report said industrial production climbed by 0.6 percent in August after edging down by a revised 0.1 percent in August. Street had expected industrial production to rise by 0.2 percent compared to the 0.2 percent dip originally reported for the previous month. A separate report from the National Association of Home Builders showed an unexpected improvement in US homebuilder confidence in the month of September. The report said the NAHB/Wells Fargo Housing Market Index inched up to 68 in September from an upwardly revised August reading of 67. Street had expected the index to come in unchanged compared to the 66 originally reported for the previous month.
Dow Jones Industrial Average gained 33.98 points or 0.13 percent to 27,110.80, Nasdaq rose 32.47 points or 0.40 percent to 8,186.02 and S&P 500 was up by 7.74 points or 0.26 percent to 3,005.70.
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