U.S. stocks jumped on Tuesday with the S&P 500 hitting a new record, as the market’s historic rally extended to December.
The Dow Jones Industrials finished the day 185.28 points higher at 29,823.92. Apple popped 3.1% to lead the 30-stock Dow higher.
The S&P 500 regrouped 40.82 points, or 1.1%, to 3,662.45, marking a fresh record closing high. Communication services and financials were the best-performing sectors in the S&P 500, rising at least 1.6% each.
The NASDAQ grew 156.37 points, or 1.3%, to 12,335.11, also a closing high.
In corporate news, Tesla’s shares popped 3% after S&P Dow Jones Indices said on Monday night the electric-car maker will be added to the S&P 500 on Dec. 21 in a single step despite its large size. The index provider had considered adding the $500-billion stock in multiple phases.
Shares of Zoom Video fell 15.1% despite the video-conferencing giant reporting better-than-expected earnings for the third quarter.
Sentiment got a lift after news reports that Treasury Secretary Steven Mnuchin will speak with House Speaker Nancy Pelosi about “keeping the government running,” adding that “I’m sure we’ll also be mentioning COVID Relief.” Meanwhile, a group of lawmakers unveiled a $908-billion stimulus plan, which includes $208 billion in Paycheck Protection Program small business loans.
The Dow rallied 11.8% in November, posting its best one-month performance since January 1987. The S&P 500 hiked 10.8% and the NASDAQ rose11.8%, , for their strongest monthly advances since April. After November’s gain, the S&P 500 is up 12.1% for 2020.
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are speaking before Congress this week. Powell called the U.S. economic outlook “extraordinarily uncertain” in prepared remarks to be delivered Tuesday.
Prices for the 10-Year Treasury fell hard, driving yields up to 0.92% from Monday’s 0.85%. Treasury prices and yields move in opposite directions.
Oil prices dipped 78 cents to $44.56 U.S. a barrel.
Gold prices regained $37.50 to $1,814.10 U.S.