The Nasdaq Composite and the S&P500 index rose on Tuesday. Investors welcomed signs the benchmark interest rate may eventually be cut.

The speculation came after a meeting between the Federal Reserve Chairman, the chairman of the Senate Banking Committee and the Treasury Secretary about the problems in the financial markets.

Despite the positive sentiment, the Dow Jones Industrials posted slight losses. It ended 30 points weaker falling to 13,091; the S&P500 managed to gain 2 points ending at 1,447, and the Nasdaq was up 13 to finish at 2,521.

In company news, investors in Countrywide Financial got a bit of relief on Tuesday. Shares were up 9.99% to $21.79 on speculation that billionaire investor Warren Buffett may buy parts of the troubled lender, according to the Wall Street Journal. Apparently, Berkshire Hathaway might be interested in buying Countrywide's debt servicing business and high-quality mortgages. Countrywide shares have lost half their value so far this year.