The US markets ended mostly lower on Tuesday on account of profit booking as traders cashed in on the strong gains posted in recent sessions. Selling pressure was somewhat subdued, however, with stocks holding on to the bulk of their recent gains as traders generally remain optimistic about a quick economic recovery. Traders also seemed reluctant to make more significant moves ahead of the Federal Reserve's monetary policy announcement. The Fed is not expected to announce any significant policy changes, although traders are still likely to pay close attention to the central bank's assessment of the economic outlook.
On the economic data front, wholesale inventories in the US increased by slightly less than expected in the month of April, according to a report released by the Commerce Department. The Commerce Department said wholesale inventories rose by 0.3 percent in April after tumbling by a revised 1.1 percent in March. Street had expected wholesale inventories to rise by 0.4 percent compared to the 0.8 percent slump originally reported for the previous month. The rebound in wholesale inventories came as inventories of non-durable goods surged up by 1.1 percent in April after plunging by 3.4 percent in March. Meanwhile, the report said inventories of durable goods fell by 0.3 percent in April after rising by 0.4 percent in the previous month. The Commerce Department also said wholesale sales plunged by 16.9 percent in April after tumbling by 5.1 percent in March.
Dow Jones Industrial Average fell 300.14 points or 1.09 percent to 27,272.3 and S&P 500 was down by 25.21 points or 0.78 percent to 3,207.18, while Nasdaq rose 29.01 points or 0.29 percent 9,953.75.
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