ALBAWABA - The U.S. stock indices closed with collective gains on Tuesday, buoyed by a decrease in bond yields following statements leaning towards monetary easing by Federal Reserve officials, while investors cautiously monitored developments in the Middle East.
The President of the Federal Reserve Bank of Atlanta stated that the U.S. central bank doesn't need to raise interest rates further and doesn't see any future recession.
Performance of Key U.S. Indices:
The Dow Jones Index rose by 0.4%, equivalent to around 135 points, marking its third consecutive daily gain.
The S&P 500 index gained about 0.5%, supported by gains across all major sectors, led by the utilities sector, which rose by approximately 1.4%.
The Nasdaq Composite Index also increased by 0.6%, achieving its highest daily close in three weeks. General Motors shares rose by approximately 1.6% on Tuesday, marking its third consecutive daily gain, adding $1.6 billion to the company's market value in three sessions.
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These gains came as the company reached a preliminary agreement with around 4,300 Canadian workers after their union called for a nationwide strike early on Tuesday. The Canadian union "Unifor" stated that strike actions were suspended to allow members to vote on the preliminary agreement, which must be approved by the majority of workers before adoption.
PepsiCo Shares:
PepsiCo shares rose by approximately 1.9% on Tuesday, recording its largest daily gain in a month, adding $4.2 billion to the company's market value in one day.
These gains came after the soft drink company raised its annual profit expectations for the third time this year. The company expects earnings per share to reach $2.25, compared to Wall Street's expectations of $2.15. It also expects its revenue to reach $23.45 billion, compared to expectations of $23.39 billion.
