Dow and S&P 500 Hit New Highs Amid China's Stimulus Boost

The Dow and S&P 500 reached new highs on Tuesday, driven by gains in mining stocks following China's unveiling of a sweeping stimulus package. Despite an initial dip due to weak U.S. consumer confidence data, key indexes rebounded. Metal and technology sectors saw significant boosts, with Federal Reserve's caution on inflation adding a note of restraint.

The Dow and S&P 500 soared to new highs on Tuesday, largely driven by gains in mining stocks after China announced a significant stimulus package. This surge came despite an initial setback caused by weak U.S. consumer confidence data, as reported by the Conference Board.

"Today's price action is predominantly about China's policy announcements, offering direct support for their equity market and promising future interest rate cuts," stated Zachary Hill, head of portfolio management at Horizon Investments. "This has led to sharp moves in international stocks, influencing China-sensitive and cyclical industries like metals and mining in the U.S. market."

By 2:39 p.m. EDT, the Dow Jones Industrial Average inched up 2.96 points to 42,127.61, the S&P 500 rose by 8.78 points to 5,727.91, and the Nasdaq Composite increased by 86.09 points to 18,060.36. Gain performances were notable in the materials sector, which saw a 1.32% rise. Metal prices jumped as China, the world's second-largest economy, introduced measures like copper and lithium mining boosts. Major mining firms including Freeport-McMoRan and Southern Copper experienced notable gains.

(With inputs from agencies.)