US stocks rise for 4th straight day

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Tuesday, July 2, 2013. US stocks on Tuesday closed solidly higher for the fourth straight day as investors ignored the the International Monetary Fund's lowered growt
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Tuesday, July 2, 2013. US stocks on Tuesday closed solidly higher for the fourth straight day as investors ignored the the International Monetary Fund's lowered growth forecasts for the US and global economies. -- FILE PHOTO> BLOOMBERG

NEW YORK CITY (AFP) - US stocks on Tuesday closed solidly higher for the fourth straight day as investors ignored the the International Monetary Fund's lowered growth forecasts for the US and global economies.

At the closing bell, the Dow Jones Industrial Average increased 75.65 (0.50 per cent) to 15,300.34.

The broad-based S&P 500 added 11.85 (0.72 per cent) to 1,652.31, while the tech-rich Nasdaq Composite Index rose 19.43 (0.56 per cent) to 3,504.26.

The International Monetary Fund trimmed its world economic growth expectations for 2013 to 3.1 per cent from the April forecast of 3.3 per cent.

China and other emerging economic powers now face new risks, the IMF warned, "including the possibility of a longer growth slowdown."

But some analysts said investors were cheered by slightly better-than-expected earnings from Dow component Alcoa, which kicked off the earnings season late Monday, and were increasingly comfortable with the prospect that the Federal Reserve will soon begin tapering its stimulus programme.

"People have started to realise in the last week that even though the Fed may be tapering, the only way it is going to happen is if there is economic improvement, "said Michael James, managing director of equity trading and Wedbush Morgan Securities.