The S&P 500 rose Tuesday, approaching its record high, as the Federal Reserve's recent dovish shift on rates lifted stocks.
The broad market index gained 0.59% to 4,768.37. With Tuesday's gain, the S&P 500 is about 0.6% from surpassing its record close and 1% from equaling its intraday record, both set in January 2022.
The Dow Jones Industrial Average rose 251.90 points, or 0.68%, to 37,557.92. The Nasdaq Composite advanced 0.66% to 15,003.22. It was the first time the tech-heavy index closed above the 15,000 level since January 2022.
The Nasdaq 100 gained 0.49% to 16,811.85, reaching all-time intraday and closing highs.
Walgreens Boots Alliance was the best performer in the Dow, with shares up by 4.2%. Meanwhile, solar stocks Enphase Energy and First Solar were among the biggest S&P 500 advancers, up by about 9% and 4%, respectively.
Energy stocks outperformed, with the S&P 500 sector up by 1.2% as oil prices rose. Occidental Petroleum shares gained 2.3%, while Halliburton and Exxon Mobil shares were each higher by more than 1%.
Equities have hit rally mode as of late, with last week's indication of three likely interest rate cuts from the Federal Reserve in 2024 providing a catalyst for the market. Signs of cooling inflation and a pullback in Treasury yields have also helped risk assets during what's already a typically strong season for equities.
"This bias of buying stocks is taking hold," said Kim Forrest, founder at Bokeh Capital Partners. "And unless news changes it, we're probably going to drift higher every single day because of it."
All three major averages on pace to finish December with gains. The S&P 500 is up 4.4% for the month and coming off its longest weekly winning streak since 2017. The Dow and Nasdaq are up 4.5% and 5.5%, respectively.