US stocks rallied in the previous session to book the highest level profits
, boosting the economic recovery of the nation as well as the globe in the early morning trading session on Tuesday. Federal Reserves' stand on the monitory policy was the most concerning issue for the investors across the country as different forecasts provided different analysis of the situation advising investors to hold back their investment plans till the Fed's economic policy is out.
US Federal Reserves' policy came out on a slight disappointing note, declaring that the economic pace of the recovery of the US economy will be slow and the interest rates will continue to remain unchanged.
Taking cues from the policy highlights, the US stocks ended trading mixed on Tuesday with the Dow Jones Industrial Average closing at 0.07%, the S&P 500 index at 0.26% and Nasdaq Composite index at 0.28% at the end of the day.
In the opinion of Tom Schrader, managing director at Stifel Nicolaus, the US market liked the fact that the Fed is willing to take the responsibility of necessary measures to keep the economy from slipping further. Investors viewed that as a sign that the Fed may implement further to ease measures in the future if they need to.
The NBER (The National Bureau of Economic Research) report on Tuesday revealed that the US markets reported better-than-expected profits in the third quarter with home building companies like Lennar Corp. marking profits in the home sales. Builder sentiments were high on the news of the faster growth of the housing sector in the current quarter than the previous two quarters.
Though the markets didn't make a big move, the trading pace and volumes of the stocks were satisfactory after gaining momentum on the fresher and healthier gains earned in the previous session.
HP stocks rose by 1.35% after the PC maker settled a lawsuit with Oracle. Intel stocks climbed by 1.1%, while Caterpillar shares jumped by 2.2% at the ending stage on Tuesday.