Stocks were higher Tuesday, gaining momentum after a Bloomberg report that the U.S. and China are pursuing talks to defuse a trade war.
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The Dow Jones Industrial Average gained 108.36 points, or 0.43%, to 25,415.19. The S&P 500 rose 13.69 points, closing at 2,816.29. The Nasdaq Composite was up 41.79 points at 7,671.79.
Meanwhile, investors digested the latest earnings results and economic data while awaiting the Federal Reserve’s interest rate decision.
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Earnings reports released before the opening bell included Pfizer and Procter and Gamble. The big report came after the closing bell when tech giant Apple released its latest quarterly results.
Investors will also be watching the Fed, which begins a two-day policy meeting on Tuesday. It is widely expected that the central bank will announce Wednesday that it will keep interest rates unchanged. Economic growth combined with rising inflation are likely factors that will keep the Fed on track for another two hikes this year, according to Reuters.
Economic data released Tuesday morning included a reading on home prices and a check on spending and consumer confidence. According to Case-Shiller, home prices retreated in May. The U.S. government reported that consumer spending rose in June. Inflation, however, eased in June with the core PCE – the Fed's preferred inflation gauge – rising just 0.1%.
Commodities were mostly lower with a rising U.S. dollar pressuring prices. Most commodities are priced in U.S. dollars, therefore when the greenback climbs it makes commodities more expensive for holders of foreign currencies, thereby denting demand.
FOX Business’ Ken Martin contributed to this article.