The S&P 500 and the Dow Jones Industrial Average set records in a fifth day of gains as investors cheered data showing the U.S. economy expanded in the third quarter by the most in 11 years.
"Whenever we hit a milepost, the news is spread to the mainstream, and a lot of people are still concerned about the market from 2008, so the round numbers help us move the Wall Street numbers to Main Street," Art Hogan, chief market strategist at Wunderlich Securities, of the Dow closing above 18,000 for the first time.
"The GDP number blew everybody away," said Hogan.
The key theme coming into 2015 is a confident consumer that is driven by the tail winds of higher levels of employment, lower costs of energy and higher equity market. Your 401K is doing better, your job is doing better and it cost less to fill up your tank. 2015 investing will be everything that is facing the consumer," Hogan said.
The Nasdaq, however, fell, snapping a four-session winning streak, as biotechnology names weighed.
"This is just a flushing out of valuations in a sector that is very momentum driven," said Hogan, who noted the unraveling followed the more than 14 percent drop on Monday by Gilead Sciences after Express Scripts Holding said it would no longer cover the drugmaker's hepatitis C treatment in most cases.
Shares of Gilead on Tuesday fell another 3.7 percent.