Investors were also digesting trade-related news. The Wall Street Journal said US President Donald Trump and Chinese leader Xi Jinping will discuss a trade framework to reduce US tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals.
The Dow Jones Industrial Average rose 161.78 points, or 0.34 percent, to 47,706.37, the S&P 500 gained 15.73 points, or 0.23 percent, to 6,890.89, and the Nasdaq Composite gained 190.04 points, or 0.8 percent, to 23,827.49.
Trump lavished praise on Japan’s first female leader, Sanae Takaichi, in Tokyo on Tuesday. They signed a deal to bolster supplies of critical minerals and rare earths, as their nations seek to reduce China’s dominance of some areas of key electronic components.
QUARTERLY EARNINGS UP
With results in from 180 of the S&P 500 companies, third-quarter earnings are estimated to have increased 10.5 percent from the year-ago period, up from earlier estimates for the quarter, according to LSEG data.
On Wednesday, the Federal Reserve is widely expected to announce a 25-basis-point interest rate cut. Investors will be keen to get any details on the rate outlook, especially given that the US government has been shut down for nearly a month, delaying crucial economic data and forcing traders to rely on private releases and corporate announcements.