Wall Street gains as Fed minutes boost stimulus bets

US stocks rose for a third straight day on Tuesday in a volatile session, after minutes from the latest Federal Reserve meeting boosted expectations the US central bank will act again to stimulate the economy.

The Dow Jones industrial average was up 20.39 points, or 0.18 percent, at 11,559.64. The Standard & Poor's 500 Index was up 2.80 points, or 0.23 percent, at 1,212.88. The Nasdaq Composite Index was up 14.00 points, or 0.55 percent, at 2,576.11.

A surge in British equities helped keep European shares positive, as major euro zone markets fell, after key indicators of economic activity came in below expectations, adding to worries that the region could go into recession.

The FTSEurofirst 300 index of top European shares were up 0.7 percent at 937.57 points.

The Nikkei climbed for a fourth straight day on stronger-than-expected US consumer spending data but stopped short of 9,000 with the market wanting more reassurance that the US economy was not slipping back into recession before testing that level.

The benchmark Nikkei finished 1.2 percent higher at 8,953.90 in light trade, after touching an intraday high of 8,992.86. The broader Topix index gained 1.1 percent to 767.30.