U.S. stocks closed higher on Tuesday and the Dow Jones Industrial Average racked up a fifth straight record high powered by Goldman Sachs, JPMorgan Chase and other banks. The Dow Jones Industrial Average was up 71.36 points, or 0.33%, to 21,962.48, the S&P 500 had gained 5.97 points, or 0.24%, to 2,476.27 and the Nasdaq Composite had added 14.82 points, or 0.23%, to 6,362.94.
In the U.S., the core personal consumption expenditure (PCE) price index for June - which is watched by the Federal Reserve as an estimate of inflation rose 1.5% on-year. The PCE price index rose 0.1% on-month in June, reflecting tepid inflation. Meanwhile, U.S. consumer spending rose just 0.1% in June, while the ISM manufacturing index stood at 56.3, reflecting an expansion in factory activity.
The greenback was a tad higher after hitting a 15-month low earlier in the session on a mix of political uncertainty stateside and market expectations of further rate hikes from the Fed. The dollar index, which measures the dollar against a basket of rival currencies, stood at 93.052, off a low of 92.777 touched overnight. Against the yen, the dollar fetched 110.51 yen, off a low of 110.28 yen seen earlier in the overnight session.
In other economic news, a preliminary reading on gross domestic product (GDP) from the European Union reflected that second-quarter economic growth in the euro zone was healthy. The EU's estimate reflected GDP rose 0.6% in the second quarter, compared with the quarter before, and 2.1% on year.
In energy news, oil prices continued to trend lower after falling more than two% in the previous session after more reports that OPEC's output rose last month despite the cartel's deal to slash production. U.S. West Texas Intermediate crude prices ended Tuesday's session down $1.01, or 2% to $48.16. International Benchmark Brent crude futures were down $1.04, or 2%, at $51.68 per barrel.
OPEC's crude output has been on the rise in recent months, led by Libya and Nigeria, which were exempt from the deal as they restored supplies sidelined by internal conflicts. That supply has come back more quickly than many market watchers anticipated. The producers have agreed to reduce supply by 1.8 million barrels a day through next March. The goal is to shrink global stockpiles of oil and balance the market after about three years of persistent oversupply that has weighed on crude prices.
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