Extending the upward trend seen over the past month, stocks moved notably higher over the course of the trading day on Tuesday. The gains lifted the Dow and the S&P 500 to new record highs, while the Nasdaq set another new twelve-year high.
The major averages closed firmly in positive territory, with the Dow and the S&P 500 near their best levels of the day. The Dow advanced 123.57 points or 0.8 percent to 15,215.25, the Nasdaq rose 23.82 points or 0.7 percent to 3,462.61 and the S&P 500 jumped 16.57 points or 1 percent to 1,650.34.
The strength that emerged on Wall Street was partly due to a positive reaction to comments from widely followed hedge fund manager David Tepper.
Tepper, the head of Appaloosa Management, told CNBC he is "definitely bullish" on stocks and said "the economy is getting better."
"What's going to make you bearish?" Tepper said in an interview on CNBC's Squawk Box. "I think every place is the place to be in the stock markets of the world."
The comments from Tepper helped offset negative sentiment generated by news that JP Morgan (JPM) lowered its growth outlook for the Chinese economy.
Citing weak domestic demand, JP Morgan lowered its forecast for full-year Chinese economic growth to 7.6 percent from 7.8 percent. The firm also lowered its outlook for growth in the second quarter.
On the U.S. economic front, the Labor Department released a report showing a moderate drop in import prices, although the data did not attract much attention ahead of the release of a slew of more closely watched reports later in the week.
Among individual stocks, shares of Dean Foods (DF) showed a strong upward move after the food and beverage company reported better than expected first quarter earnings growth. The company also reaffirmed its full-year earnings guidance.
Consumer products giant Clorox (CLX) also moved notably higher after its board raised the quarterly cash dividend on the company's common stock by nearly 11 percent to $0.71 per share.
Meanwhile, shares of SolarCity (SCTY) came under considerable selling pressure after the solar energy company reported a wider than expected first quarter loss.
Sector News
Brokerages stocks showed a particularly strong move to the upside over the course of the session, driving the NYSE Arca Broker/Dealer Index up by 2.2 percent. The gain extended a recent upward trend by the index, which reached a two-year closing high.
Goldman Sachs (GS) and Raymond James (RJF) turned in two of the brokerage sector's best performances, with both advancing by 3.3 percent.
Considerable strength also emerged among housing stocks, as reflected by the 2.2 percent gain posted by the Philadelphia Housing Sector Index. With the gain, the index ended the session at its best closing level in well over five years.
Transportation stocks also saw significant strength on the day, with the Dow Jones Transportation Average jumping 1.9 percent to a record closing high. Kansas City Southern (KSU) and Con-Way (CNW) posted standout gains.
Biotechnology, banking, chemical, and energy stocks also saw notable strength, moving to the upside along with most of the other major sectors.
Meanwhile, gold stocks bucked the upward trend by the broader markets, moving lower along with the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. While Japan's Nikkei 225 Index edged down by 0.2 percent, South Korea's Kospi Index advanced by 1 percent.
Meanwhile, the major European markets all moved to the upside on the day. The French CAC 40 Index rose by 0.5 percent, while the German DAX Index and the U.K.'s FTSE 100 Index ended the day up by 0.7 percent and 0.8 percent, respectively.
In the bond market, treasuries turned lower over the course of the session after failing to sustain an early upward move. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 1.952 percent after hitting a low of 1.895 percent.
Looking Ahead
Economic data may attract attention on Wednesday, with traders likely to keep an eye on reports on producer price inflation, industrial production and homebuilder confidence.
On the earnings front, Macy's (M), Deere (DE) and Computer Sciences Corp. (CSC) are among the companies due to release their quarterly results before the start of trading on Wednesday.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.