U.S. stocks closed higher on Tuesday, lifted by a sharp rally in energy stocks, while the technology sector rebounded after a post-election sell-off.
The Nasdaq composite outperformed, rising 1.1 percent, as Apple and the so-called FANG stocks (Facebook, Amazon, Netflix and Google's parent firm Alphabet) all rose. Technology stocks have taken a hit since the U.S. election, falling more than 2 percent entering Tuesday.
"However, the plunge endured by some of America's largest and greatest technology companies will inevitably offer a fortuitous buying opportunity for investors. The prospects of securing their best absolute returns since 2013 will entice long-short firms to add to their exposure aggressively ahead of year-end once the skittishness underneath the broader market dissipates," Jeremy Klein, chief market strategist at FBN Securities, said in a note.
Financials have been one of the biggest risers since the election, with The SPDR S&P Bank ETF (KBE) surging more than 15 percent since then.
"I think right now the market is enjoying the notion of tax cuts and less regulation," said Quincy Krosby, market strategist at Prudential Financial. She also said the market is waiting for more details regarding President-elect Donald Trump.
The Dow Jones industrial average closed about 55 points higher, notching a new all-time closing high and extending its winning streak to seven days, with Chevron contributing the most gains.
The S&P 500 rose 0.75 percent, with energy rising around 2.7 percent to lead advancers. U.S. crude rose 5.75 percent to settle at $45.81 per barrel amid renewed hopes that OPEC would agree to a production cut.