The Dow rallied on Tuesday, registering its biggest daily percentage gain in more than a month, as stronger-than-expected results and forecasts from companies including 3M and Caterpillar fuelled optimism about economic strength.
The S&P 500 and Nasdaq ended up slightly.
The S&P industrial sector <.splrci>, up 0.5 percent, also hit a record intraday high.
"It has been encouraging to see some of these industrial names report solid numbers and raise their guidance," said Lindsey Bell, investment strategist at CFRA Research in New York.
"Looking at some the earnings we got yesterday and the ones today, you`re seeing strength domestically here in the U.S."
Stocks trimmed gains late in the day after Bloomberg reported Stanford University economist John Taylor may have won in a show of hands by Senate Republicans when asked by President Donald Trump about their support of potential nominees for Federal Reserve chair.
Many market participants think Taylor, one of several names circulating for the Fed nomination, would be more hawkish than current Fed Chair Janet Yellen and other potential nominees.
Markets reacted to that headline, said Michael O`Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut, but he said the poll "obviously doesn`t mean anything."
Also dampening the market`s mood late in the session, Republican Sen. Jeff Flake criticized Trump`s style of governing and announced he would not run for re-election next year, highlighting tensions between the president and fellow Republicans.
The Dow Jones Industrial Average <.dji> rose 167.8 points, or 0.72 percent, to end at 23,441.76, a record-high close.
The S&P 500 <.spx> gained 4.15 points, or 0.16 percent, to 2,569.13 and the Nasdaq Composite <.ixic> added 11.60 points, or 0.18 percent, to 6,598.43.
Upbeat results also came from General Motors
But the financial index <.spsy>, up 0.7 percent, gave the S&P 500 its biggest boost.
Strong earnings and optimism about Trump`s tax plans have boosted stocks in recent sessions.
Offsetting some of the day`s gains, Biogen
Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favoured advancers.
About 6.2 billion shares changed hands on U.S. exchanges. That compares with the 5.9 billion daily average for the past 20 trading days, according to Thomson Reuters data.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)