Dow's 335-Point Rally Led by Gains for Apple, Caterpillar Shares
Market Overview
The Dow Jones Industrial Average surged 335 points on Tuesday, led by gains for Apple and Caterpillar shares. The rally marked the Dow's biggest one-day gain since June 2023.
The S&P 500 also rose 1.5%, while the Nasdaq Composite gained 2.1%. The rally was broad-based, with all 11 sectors of the S&P 500 finishing in positive territory.
Apple and Caterpillar Lead the Way
Apple shares jumped 3.5% after the company reported better-than-expected earnings for the fiscal fourth quarter. The tech giant also announced a new share buyback program worth up to $100 billion.
Caterpillar shares rose 4.2% after the company reported strong results for the fourth quarter. The construction equipment maker also raised its outlook for the full year.
Other Notable Movers
Other notable movers on Tuesday included Boeing, which rose 2.7%, and Merck, which gained 1.8%. Chevron and Exxon Mobil also climbed, as oil prices continued to rise.
Economic Data
On the economic front, the Commerce Department reported that new home sales rose 2.2% in December. The increase was better than expected and suggests that the housing market may be starting to turn around.
Looking Ahead
The stock market is likely to continue to be volatile in the near term, as investors await the outcome of the trade talks between the United States and China. However, the strong rally on Tuesday is a sign that investors are still optimistic about the long-term prospects for the economy and the stock market.
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