U.S. equities rose on Tuesday, with materials spiking more than 2.5 percent on the back of more executive orders from President Donald Trump.
The S&P 500 rose about 0.66 percent, notching intraday and closing records, with materials leading eight sectors higher. Copper futures for March delivery rose more than 2 percent. platinum and palladium futures also advanced more than 2 percent.
"I think the real lift in the market was the second round of executive orders from the White House," said Art Hogan, chief market strategist at Wunderlich Securities. "This is very much a Trump-infrastructure rally."
President Trump signed executive orders that will make it easier for TransCanada to build the Keystone XL pipeline and for Energy Transfer Partners to build the final uncompleted portion of the Dakota Access pipeline.
The Dow Jones industrial average gained 112 points, with IBM contributing the most gains. The Nasdaq composite advanced 0.9 percent, hitting record highs on a closing and intraday basis.
Entering Tuesday, the broader U.S. stock market has traded in a narrow range for over a month, as investors wait for more details aboutTrump's political agenda, especially corporate tax cuts, deregulation and government spending. Equities had rallied sharply following the election on hopes that Trump's proposals would become law.
Dow since Nov. 8Source: FactSet
"Optimism needs to dissipate before we go up again," said Bruce Bittles, chief investment strategist at Baird. He noted that short-term liquidity drops when optimism in the market remains high for a long time. "We need to replenish that."
Trump also told U.S. automakers he will cut taxes and regulation, a day after saying he wanted to cut regulations by 75 percent, or "maybe more."
Investors also digested a slew of corporate quarterly results as earnings season continued. "The market is finding relief in the long-awaited recovery of corporate earnings," said Scott Clemons, chief investment strategist at Brown Brothers Harriman.
"So far, we haven't seen any controversy in either direction from many of these bellwether companies," said Aaron Clark, portfolio manager at GW&K Investment Management. "I think it will reinforce that the earnings recession has bottomed and we can continue to see growth."