Investing.com – U.S. shares soared higher on Tuesday on signs that global manufacturing output is increasing.
At the close of U.S. trade, the Dow Jones Industrial Average gained 1.47%, the S&P 500 moved higher by 1.54% and the Nasdaq Composite index climbed 1.67%.
Worldwide manufacturing showed improvement in December signaling that production is standing up against the euro zone debt crisis.
In the U.S. a report showed factory output growing at the fastest pace in six months. In addition, similar bullish data from Germany, China, and Australia helped fuel the rally
Frank Ingarra of NorthCoast Asset Management explained to Bloomberg, "You're starting to see more people want to take more risks. Nobody was really around for the last two weeks, now they are getting positioned to start the year with a positive leap."
Commodities, financials and industrials led the market higher with Bank of America soaring 4.9%, Citibank jumping 8.1%, Caterpillar added 4.5% and Conoco Phillips advanced 1.9%.
Base metal producers also participated in the rally with U.S. Steel adding 7.1% and Alcoa advancing 6.5%.
Even high tech joined in the optimism with Cisco climbing 4% after being upgraded at JPMorgan to "overweight"
Interestingly, stocks maintained their gains after the Federal Reserve revealed in its minutes that it plans to make public their own forecasts for the federal fund rate at their January 24-25th meeting. Some analysts believe this may be signaling the start of increased interest rates.
Across the Atlantic, European stock markets were mixed with the EURO STOXX 50 higher by 0.83%, France's CAC 40 climbed 0.72%, while Germany's DAX 30 advanced 1.50%. Meanwhile, in the U.K. the FTSE 100 soared 2.29%.
Investors are awaiting payroll data later in the week to confirm the U.S. economic optimism.
At the close of U.S. trade, the Dow Jones Industrial Average gained 1.47%, the S&P 500 moved higher by 1.54% and the Nasdaq Composite index climbed 1.67%.
Worldwide manufacturing showed improvement in December signaling that production is standing up against the euro zone debt crisis.
In the U.S. a report showed factory output growing at the fastest pace in six months. In addition, similar bullish data from Germany, China, and Australia helped fuel the rally
Frank Ingarra of NorthCoast Asset Management explained to Bloomberg, "You're starting to see more people want to take more risks. Nobody was really around for the last two weeks, now they are getting positioned to start the year with a positive leap."
Commodities, financials and industrials led the market higher with Bank of America soaring 4.9%, Citibank jumping 8.1%, Caterpillar added 4.5% and Conoco Phillips advanced 1.9%.
Base metal producers also participated in the rally with U.S. Steel adding 7.1% and Alcoa advancing 6.5%.
Even high tech joined in the optimism with Cisco climbing 4% after being upgraded at JPMorgan to "overweight"
Interestingly, stocks maintained their gains after the Federal Reserve revealed in its minutes that it plans to make public their own forecasts for the federal fund rate at their January 24-25th meeting. Some analysts believe this may be signaling the start of increased interest rates.
Across the Atlantic, European stock markets were mixed with the EURO STOXX 50 higher by 0.83%, France's CAC 40 climbed 0.72%, while Germany's DAX 30 advanced 1.50%. Meanwhile, in the U.K. the FTSE 100 soared 2.29%.
Investors are awaiting payroll data later in the week to confirm the U.S. economic optimism.