With traders expressing optimism about further monetary stimulus, stocks are mostly higher in late morning trading on Tuesday. The major averages have rebounded after ending the previous session firmly in negative territory.
The strength on Wall Street comes as traders look ahead to the Federal Reserve's upcoming monetary policy meeting. Many expect the central bank to announce a third round of quantitative easing to stimulate the sluggish economy.
Nonetheless, buying interest remains relatively subdued amid uncertainty about the outcome of the meeting as well as the German Federal Constitutional Court's ruling on a request for a temporary injunction against Europe's permanent bailout fund.
Steel stocks have moved sharply higher on the day, with the NYSE Arca Steel Index advancing by 2 percent. With the gain, the index is on pace to end the day at its best closing level in a month.
Considerable strength has also emerged among computer hardware stocks, as reflected by the 1.8 percent gain being posted by the NYSE Arca Computer Hardware Index. Logitech (LOGI) has helped to lead the sector higher, surging up by 5.7 percent.
Gold, natural gas, and oil stocks are also posting notable gains, moving higher along with their associated commodity prices.
The major averages have moved to the upside in recent trading, with the Dow and the S&P 500 reaching new highs. The Dow is up 88.62 points or 0.7 percent at 13,342.91, the Nasdaq is up 10.45 points or 0.3 percent at 3,114.47 and the S&P 500 is up 6.97 points or 0.5 percent at 1,436.05.
by RTT Staff Writer
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