U.S. stocks inch closer to record territory as earnings season begins.
The U.S. stock market rallied on Tuesday, as investors cheered stronger than expected earnings and China trade optimism.
All of Wall Street’s major indices finished in positive territory on Tuesday. The Dow Jones Industrial Average jumped 237.64 points, or 0.9%, to 27,025.00. The blue-chip index was up by as much as 333 points earlier in the day.
The broad S&P 500 Index gained 1% to 2,995.64. Eight of 11 primary sectors contributed to the gains, with health care leading the pack. Communication services and financials companies also outperformed the benchmark.
Meanwhile, the technology-focused Nasdaq Composite Index advanced 1.2% to settle at 8,148.71.
A measure of implied volatility known as the CBOE VIX declined sharply on Tuesday, as optimism extended across the financial markets. The so-called “fear index” touched a session low of 13.39 on a scale of 1-100 where 20 represents the historic average. VIX would eventually settle down 7.7% at 13.45.
Shares of JPMorgan Chase & Co, Citigroup Inc. and UnitedHealth Group Inc. rose sharply on Tuesday after reporting earnings and revenue that were higher than expected.
In commodities, gold prices declined sharply on Tuesday, as demand for haven assets waned. Gold for December settlement fell $12.30, or 0.8%, to $1,485.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver with the same expiry fell 27 cents, or 1.5%, to $17.44.
The Final Word: Earnings season is set to continue this week, with several Dow blue-chips scheduled to report quarterly results. FactSet is calling for another disappointing quarter of earnings, with year-over-year declines expected.