Stocks rise to new highs, as Dow adds triple digits.
U.S. stocks extended their red-hot streak on Tuesday, with all three major benchmarks setting fresh record highs.
The Dow Jones Industrial Average (NYSEARCA:DIA) surged 102.80 points, or 0.4%, to close at 25,385.80. With the gain, the Dow has recorded its best start to a year since 1987.
The broader S&P 500 Index (NYSEARCA:SPY) added 0.1% to close at 2,751.29. Only four of 11 sectors contributed to the rally, with financials and healthcare rising sharply. Gains in these sectors offset big declines in real estate and telecommunication services.
Meanwhile, the tech-driven Nasdaq Composite Index (NYSEARCA:QQQ) climbed 0.1% to 7,163.58.
The Dow and Nasdaq have returned between 2.7% and 3.7% for 2018.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) rose for a second straight session, but continued to trade at less than half the historic average. The market’s preferred “fear index” added nearly 6% to 10.08, on a scale of 1-100 where 20 represents the historical average.
In commodities, oil prices surged to three-year highs on heightened geopolitical risks and concerns over supply constraints from Iranian ports. Investors are awaiting a decision by President Trump over whether to end sanctions relief on Iran as part of the 2015 nuclear deal.
U.S. West Texas Intermediate (WTI) futures climbed $1.14, or 1.9%, to $62.87 a barrel. Brent, the international futures benchmark, rose 94 cents, or 1.4%, to $68.72 a barrel.
The Final Word: Thee equities rally continued on Tuesday, but showed signs of fatigue as major sectors diverged. It remains to be seen whether the uptrend is sustainable or whether a sharp correction will ensue.