NEW YORK (CNNMoney) -- U.S. stocks finished up about 1% Tuesday, as investors breathed a delayed sigh of relief about Greece and were optimistic the Federal Reserve might act to boost the economy at the end of its two-day meeting .
"When bad news isn't as bad as you expected, the market reflects that," said Bruce McCain, chief investment strategist at Key Private Bank.
The Dow Jones industrial average (INDU) rose 96 points, or 0.8%, the S&P 500 (SPX) gained 13 points, or 1%, and the Nasdaq (COMP) added 34 points, or 1.2%.
Financial shares were some of the biggest gainers Tuesday. "Bank stocks have been among the most sensitive to the overall trends," said McCain. "Clearly money is moving back toward the risk sector."
Investors are also optimistic that the Federal Reserve's two-day meeting, which ends Wednesday, will produce another round of bond buying, plans to continue its so-called Operation Twist, or some other type of stimulus.
"What we're seeing today foretells the way the rest of the week is going to go," said Doug Cote, chief market strategist at ING Investment Management. "Since we're expecting to see supportive policy out of the U.S. and maybe even out of Europe, the market will get even better."
The dollar was slightly lower against the euro, the Japanese yen and the British pound.
Oil for July delivery settled at $84.03 a barrel, up 75 cents.
Gold futures for August delivery settled down $3.90 to $1,623.10 an ounce.
No comments:
Post a Comment