Following the lackluster performance seen in the previous session, stocks moved sharply higher over the course of the trading day on Tuesday. The tech-heavy Nasdaq rebounded strongly after ending the previous session at its lowest closing level in well over a month.
The major averages ended the day just off their highs of the session. The Dow advanced 196.14 points or 0.9 percent to 21,899.89, the Nasdaq surged up 84.35 points or 1.4 percent to 6,297.48 and the S&P 500 jumped 24.14 points or 1 percent to 2,452.51.
Strength overseas contributed to the buying interest on Wall Street amid easing concerns about recent political turmoil in Washington.
The upward move was also partly attributed to a positive reaction to President Donald Trump’s speech outlining his new strategy for Afghanistan.
Trump hinted at an increase in U.S. military forces in Afghanistan but stressed that he would not discuss specific troop levels.
The president began his remarks with a call for national unity in what has been seen as an effort to quell the furor over his response to the recent violence in Charlottesville, Virginia.
The rally by stocks also came after a report from Politico said Trump’s top aides and congressional leaders have made significant strides in shaping a tax overhaul.
Boeing (BA) contributed to the upward move by the Dow, climbing by 1.7 percent after being awarded a $349 million U.S. Air Force contract for work on the nation’s next intercontinental ballistic missile.
Additionally, shares of DSW (DSW) moved sharply higher after the shoe retailer reported second quarter results that beat estimates on both the top and bottom lines.
Restaurant chain Ruby Tuesday (RT) also posted a substantial gain after reporting its fourth quarter results and announcing a plan to address its sales and operational challenges and improve profitability.
On the other hand, shares of Toll Brothers (TOL) moved to the downside after the luxury home builder reported fiscal third quarter earnings that beat estimates but on weaker than expected sales.
Biotechnology stocks showed a substantial move to the upside, driving the NYSE Arca Biotechnology Index up by 2.1 percent. The index climbed further off the two-month closing low set last Friday.
Blueprint Medicines (BPMC) helped to lead the biotechnology sector higher on the day, surging up by 12.6 percent.
Considerable strength was also visible among railroad stocks, as reflected by the 2 percent jump by the Dow Jones Railroads Index….