Wall Street closes higher with tech gains

NEW YORK (AA) – Wall Street ended Tuesday with gains after investors took a buying position, especially toward technology stocks, after evaluating that a Fed rate hike is less likely this month.

Disappointing jobs data last week was coupled with a worsening condition in the American non-manufacturing sector, which led investors to believe that the probability of the Fed to increase its interest rates in September is now lower.

The American economy added just 155,000 jobs in August, while the non-manufacturing industry contracted to its lowest level in the last 6.5 years.

Although the weak data do not look promising for the U.S. economy, investors have been more concerned with a rate hike by the Fed and are now relieved that the bank could hold off on increasing rates until December.

The Dow Jones rose 46 points to end the day at 18,538 and the S&P 500 was up six points to 2,186. The Nasdaq jumped 26 points to end at 5,275 -- an all-time record-high, helped by gains in tech stocks.

Shares of Yahoo rose 3.3 percent, Facebook was up 2.5 percent and Chinese e-commerce giant Alibaba jumped 4.4 percent.