By Sinead Carew
(Reuters) - Wall Street's major indexes on Tuesday extended the New Year rally on investor optimism ahead of quarterly earnings reports.
The S&P 500 and Nasdaq were on track for their sixth closing record in a row. The Dow had snapped a 3-day run of closing records in the previous day's session.
"While investor sentiment continues to be high and confidence is high, there's still some caution from investors. Where do you position yourself" if wage growth pushes up inflation? asked Jeffrey Carbone, managing partner at Cornerstone Wealth in Huntersville, North Carolina. "It becomes a question of how much longer can this go, how much higher."
At 3:01 p.m. ET, the Dow Jones Industrial Average <.DJI> rose 124.84 points, or 0.49 percent, to 25,407.84, the S&P 500 <.SPX> gained 7.9 points, or 0.29 percent, to 2,755.61 and the Nasdaq Composite <.IXIC> added 16.95 points, or 0.24 percent, to 7,174.34.
Investors were hopeful about global economic growth and tax-cut led gains for corporate earnings, but they are anxiously watching whether any economic boost from the tax overhaul could overheat inflation and lead to a sharper rise in interest rates.
"So long as inflation remains at around these levels, it will certainly support the multiples that we have," said Tim Dreiling, regional investment director for The Private Client Reserve of U.S. Bank.
After a lukewarm December jobs report, signs of a pickup in inflation could come in the monthly consumer price report due on Friday.
Big U.S. banks are set to kick off fourth-quarter earnings season on Friday. Investors will seek more detail on the impact of corporate tax cuts, and what companies plan to do with the savings.
Chip stocks were the biggest drag on the technology sector <.SPLRCT>, which was down 0.09 percent. Intel
Declining issues outnumbered advancing ones on the NYSE by a 1.23-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favoured decliners.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)