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NEW YORK - WALL Street opened stronger on Tuesday, extending a rally from the prior session, after the release of manufactured durable goods data that was stronger than expected.
The market was bracing for the outcome of a two-day Federal Reserve meeting set to open, where further rate cuts are expected.
The Dow Jones Industrial Average climbed 45.44 points (0.37 per cent) to 12,429.33, extending a big rally from Monday that helped push up global markets.
The Nasdaq added 9.14 points (0.39 per cent) to 2,359.05 and the Standard & Poor's (S&P) 500 index increased 6.26 points (0.46 per cent) to 1,360.22.
The market was bracing for more volatility with the Fed meeting set to open, and many expecting the central bank to cut rates again after an emergency move last week to help shore up flagging growth.
But traders were surprised by the data showing a 5.2 per cent gain in orders for big ticket manufactured durable goods in December, well above market expectations.
'This report may suggest more resiliency than expected, but the report is just one factor,' said Stephen Gallagher at Societe Generale, who added that it may influence the Fed as it debates the possibility of a cut of 25 or 50 basis points in the federal funds rate, currently at 3.5 per cent. -- AFP
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