Investing.com - U.S. stocks closed higher Tuesday, as traders awaited the Federal Reserve’s upcoming policy meeting with hopes the central bank will announce fresh stimulus measures to bolster growth.
At the close of U.S. trade, the Dow Jones Industrial Average rose 0.52%, the S&P 500 index climbed 0.31%, while the Nasdaq Composite index eased higher by 0.02%.
Markets continued to eye the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus.
Meanwhile, Germany’s constitutional court confirmed that it will give its ruling on the euro zone’s bailout fund, the European Stability Mechanism on Wednesday, following earlier reports suggesting that the decision may be delayed.
Separately, sentiment remained supported after European Central Bank President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Shares in tech giant Apple climbed 0.85%, one day before the highly anticipated release of its latest iPhone.
Reuters reported earlier that, according to a JP Morgan projection, sales of the new device could add between a quarter and a half percentage point to fourth quarter annualized growth in the U.S.
Green Mountain held on to Monday’s gains, advancing 6.79% after Lavazza said in a filing after market close that it increased its stake in the American coffee business to 6.8%.
Also on the upside, Facebook saw shares advance 0.80%, as CEO Mark Zuckerberg was scheduled to speak at the TechCrunch conference, later in the day.
Zynga shares plummeted 1.77% on the other hand, after the group’s chief marketing officer resigned on Monday, becoming the latest senior executive to leave the struggling company behind a number of Facebook games such as Farmville.
Palo Alto Networks also posted a sharp loss, plunging 9.27%, even as the software company promised shareholders continued revenue growth after it beat fourth-quarter revenue and earnings estimates, thanks to rising demand for protection against network security attacks.
Elsewhere, McDonald's rose 0.62%, although the fast-food chain reported a weaker-than-expected 3.7% gain in August same-store sales, hurt by Europe and the volatile global economy.
At the close of European trade, the EURO STOXX 50 soared 1.15% France’s CAC 40 added 0.89%, while Germany’s DAX 30 rocketed 1.34%
Also Tuesday, official data showed that the U.S. trade deficit widened less-than-expected in July, holding just above the 18-month low gap hit in June.
The U.S. trade deficit widened to a seasonally adjusted USD42.0 billion from a downwardly revised deficit of USD41.9 billion in June. Analysts had expected the U.S. trade deficit to widen to USD44.0 billion.
Investors are awaiting the German high court decision and New Zealand’s interest rate numbers on Wednesday.