Stocks finished firmly higher Tuesday. The Dow added 372 points to 25,425 while the S&P 500 climbed 34 points to 2,744. The Nasdaq Composite gained 106 points to 7,414.
All three major averages rallied more than 1.2% amid rising optimism surrounding U.S. and Chinese trade relations. Earlier, President Trump said that he may extend the March 1st tariff deadline if a deal with China appears close. This comes ahead of high-level negotiations later this week in Beijing. Stocks were also buoyed following reports that Congress reached a tentative agreement to avoid a partial government shutdown. On the data front, a release showed the NFIB small business optimism index fell to a two-year low in January. A separate update revealed U.S. job openings jumped to a record high of 7.3 million in December.
Ten of 11 S&P 500 sectors ended in positive territory. Materials paced gains with shares of DowDuPont adding 2.6% to $53.35. Consumer Discretionary shares also outperformed with Under Armour adding 6.8% to $22.20 after the athletic apparel maker topped Wall Street profit and sales expectations. In other corporate news, shares of Coty surged 12.5% to $10.87 amid reports European conglomerate JAB offered to increase its stake in the company to as much as 60%.
Breadth was positive on issues by roughly 3:1 on both the NYSE and the Nasdaq. Composite NYSE Volume was more than 3.8 billion shares.
Treasuries weakened with the yield on the 10-year note up two basis points to 2.68%. In commodities, WTI crude jumped 1.3% to $53.09/barrel. COMEX gold added 0.2% to $1309.20/ounce amid a weaker dollar.