NEW YORK, Oct. 1 (Xinhua) -- U.S. stocks ended higher Tuesday after Monday's slip, shrugging a U.S. government shutdown, as investors expected the shutdown may help delay the Federal Reserve 's plan to taper its money easing policies.
The Dow Jones Industrial Average gained 62.03 points, or 0.41 percent, to 15,191.70 points. The Standard & Poor's 500-stock Index added 13.45 points, or 0.80 percent, to 1,695.00 points. The Nasdaq Composite Index surged 46.50 points, or 1.23 percent, to 3, 817.98 points.
Some analysts believe that the U.S. central bank could delay tapering its bond buying programs due to the government shutdown, which started Tuesday and served as support to the market.
"The Fed tapering is going to be pushed off even further," Gregory J. Keating, managing director at James E. Coffey Securities Inc, told Xinhua Tuesday. He said that most people now believe the Fed tapering may be delayed to next year after the government shutdown.
"It was not bad news (to the stocks), because the market has anticipated it," said Benedict P. Willis III, managing director at Albert Fried & Company, LLC, explaining why the market could disengage from the government shutdown. Willis also told Xinhua that Tuesday is the first day at the third quarter which is always an up day for the market.
The immediate implication of the shutdown is that most of the government economic data flow will be halted, said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co.
U.S. construction spending in August, which should have been released in the morning by the Census Bureau, was delayed as a result of the federal government shutdown.
The most closely-watched September non-farm payrolls report by the Labor Department, which is originally scheduled for Friday, would also be postponed.
On the economic front, U.S. economic activity in the manufacturing sector expanded in September for the fourth straight month, according to the Institute for Supply Management, a private research organization. The index registered 56.2, up from August's reading of 55.7 and beating market expectation.
On other markets, gold futures on the COMEX division of the New York Mercantile Exchange on Tuesday logged the biggest decline since June 26 and closed at a nearly two-month low as the U.S. federal government began shutdown Tuesday.
The most active gold contract for December delivery dropped 40. 9 U.S. dollars, or 3.08 percent, to settle at 1,286.1 dollars per ounce.
Oil prices continued to drop as a partial U.S. government shutdown may hurt the economy and dampen fuel use.
Light, sweet crude for November delivery decreased 0.29 dollars to settle at 102.04 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 0.43 dollars to close at 107.94 dollars a barrel.
The U.S. dollar moderately slipped against most major currencies. In late New York trading, the euro rose to 1.3530 dollars from 1.3525 dollars of the previous session, while the dollar bought 97.85 Japanese yen, lower than 98.21 yen of the previous session.