U.S. equities rose on Tuesday as investors digested strong consumer confidence data, with financials leading.
Consumer confidence surged this month, hitting 125.6, up from 116.1 in February, the Consumer Board Consumer Confidence Index showed.
"This is a market that's saying: 'I will think of bad news tomorrow,'" said Kim Forrest, senior equity analyst at Fort Pitt Capital. "The U.S. economy is 70 percent consumer-based, so these numbers are important." She also said that strong quarterly results from Darden Restaurants are helping lift the market's view on the consumer.
The Dow Jones industrial average gained 150 points, with Goldman Sachs contributing the most gains. The 30-stock index also snapped an eight-day losing streak.
"That really highlights what's been underpinning the market," said Jim Davis, regional investment manager for The Private Client Group of U.S. Bank. "I also think you're seeing some bottom, fishing."
The S&P 500 rose 0.7 percent, with financials, materials, industrials and energy all rising 1 percent. The Nasdaq composite climbed 0.6 percent, with Apple climbing to a fresh all-time high.
Other data released Tuesday included the S&P CoreLogic Case-Shiller home price index, which showed U.S. home prices rose 5.9 percent to a 31-month high in January.
"The more we see the hard data gaining momentum in conjunction with the soft data shows the economy may not stall out in the second quarter," said Quincy Krosby, market strategist at Prudential Financial.