By Amy Caren Daniel
(Reuters) - Wall Street's main indexes rose over 1 percent on Tuesday, in a broad-based rally fueled by a tentative deal reached by American lawmakers to avoid another partial government shutdown and hopes that the U.S.-China trade talks could result in an agreement.
"Even though Trump hasn't settled on a deal, the way investors are looking at it is that this is more positive than what we had on Monday," said Randy Hare, director of equity research at Huntington Private Bank in Cincinnati, Ohio.
"The news on trade right now may not be as strong but it is still being viewed as a positive."
The world's two biggest economies are seeking to strike a deal before a March 1 deadline, when additional U.S. tariffs on Chinese imports will come into force.
The S&P 500 index is just about 7 percent away from its Sept. 20 record closing high, driven by optimism on trade, a largely upbeat fourth-quarter earnings season and a dovish Federal Reserve.
About 71 percent of the S&P companies that have posted earnings have topped expectations, according to IBES data from Refinitiv. But analysts' estimates for first-quarter earnings have turned negative for the first time since 2016.
At 11:06 a.m. ET, the Dow Jones Industrial Average was up 278.90 points, or 1.11 percent, at 25,332.01. The S&P 500 was up 29.53 points, or 1.09 percent, at 2,739.33 and the Nasdaq Composite was up 96.78 points, or 1.32 percent, at 7,404.68.
Seven of the 10 major sectors trading higher posted gains of more than 1 percent, with the financial group's 1.49 percent rise the steepest, supported by higher bond yields.
Only the real estate sector was trading lower.
Advancing issues outnumbered decliners by a 3.63-to-1 ratio on the NYSE and by a 3.56-to-1 ratio on the Nasdaq.
The S&P index recorded 31 new 52-week highs and one new low, while the Nasdaq recorded 56 new highs and seven new lows.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)