The Dow Jones Industrial Average was up 190 points, or 1.1 percent, closing at 17,630 on Tuesday. The S&P 500 Index added 26 points, or increased 1.2 percent, to close at 2,093. NASDAQ went up 49.43 points, or 1 percent, to 5,089.
With the improvement, Wall Street's 5-day losing streak broke, thanks to profit reports that were better-than-expected, and eased concerns over the weakened Chinese stock market. Due to Chinese regulator's moves, losses at the Shanghai composite index was lower, compared to the Monday debacle, at 1.7 percent, reports ABC.
Among the winners in Wall Street were courier giant UPS, carmaker Ford and pharmaceutical firm Pfizer. Exencial Wealth Advisors Chief Investment Officer Tim Courtney notes the slow growth of earnings over market concerns that "the lack of top-line growth and where that growth is going to come from."
But while some companies delivered, the increase in house prices was lower-than-anticipated, and consumer confidence went down as the Federal Reserve started its two-day meeting. According to Emma Lawson, senior currency strategist of NAB, the markets are tempered while waiting for guidance from the Fed on interest rates which have not been adjusted since 2006.
In a note to clients, Lawson explains, "It's been a long time between cycles. That prolonged period of guidance of policy easing has made markets nervous about the coming cycle."
Terry Sandven, chief equity strategist at Minneapolis-based U.S. Bank Wealth Management, predicts that the Fed could possibly announce a rate increase in September, but adds that the rate hike has a higher probability of being announced in December, reports NDTV.
Besides Wall Street, the European markets likewise ended their five-day losses. The German DAX went up 1.1 percent, or 118 points, and closed at 11,174, while the Euro Stoxx index improved 1.2 percent, or 41 points, to 3,554. London's FTSE added 50 points, or grew 0.8 percent, to close at 6,555.