Nasdaq closes at record high amid economic data

U.S. stocks extended gains Tuesday, with the Nasdaq Composite Index setting new closing record, as Wall Street digested the newly-released economic data.

The Dow Jones Industrial Average added 46.16 points, or 0.25 percent, to 18,538.12. The S&P 500 gained 6.50 points, or 0.30 percent, to 2,186.48. The Nasdaq increased 26.01 points, or 0.50 percent, to 5,275.91.

The Non-Manufacturing Index, which measures activity in the U.S. service sector, registered 51.4 percent in August, 4.1 percentage points lower than the July reading and missing market consensus of 55.0, the Institute for Supply Management (ISM) said in its monthly survey Tuesday.

"The best that can be said for the August ISM indices is that they have been less reliable guides lately than in the past. If they are to be trusted, the economy is sliding into the worst soft patch of the expansion to date," said Chris Low, chief economist at FTN Financial, in a note.

Meanwhile, investors were still sifting through the country's August jobs report released Friday. U.S. total nonfarm payroll employment increased by 151,000 in August, well below market consensus of 175,000, and the unemployment rate remained at 4.9 percent, according to the Labor Department.

The weaker-than-expected August jobs report eased fears that the Federal Reserve would begin its next rate hike as soon as September, since the Federal Open Market Committee is set to meet on Sept. 20-21.

Overseas, European equities ended mixed Tuesday. German benchmark DAX index at Frankfurt Stock Exchange rose 0.14 percent, while British benchmark FTSE 100 Index fell 0.78 percent.

In Asia, Chinese stocks rallied Tuesday, with the benchmark Shanghai Composite Index going up 0.61 percent to close at 3,090.71 points. Enditem