Stocks rose on Tuesday, sending U.S. benchmark indexes above their highest closes since May as American service industries expanded more than forecast.
The Dow Jones industrial average closed up 193.45, or 1.8%, at 10,944.72. The close was the highest for the index since the 11,151.83 it posted on May 3.
The S&P 500 rose 23.72, or 2.09%, closing at 1,160.75, erasing Monday’s 0.8% decline and climbing above its highest close since May 12. The Nasdaq composite was up 55.31, or 2.36%, to close at 2,399.83. All numbers are preliminary.
The faster-than-estimated growth in the Institute for Supply Management’s gauge of service industries bolstered optimism that the economic rebound is picking up. The Bank of Japan’s decision to create a fund to buy bonds and other assets comes as policymakers in the U.S. and the U.K. consider similar steps, known as quantitative easing, to protect the recoveries.
Investors awaited Friday government data forecast to show the jobless rate increased as the economic recovery failed to keep up with a growing labor force. Private payrolls grew by 75,000 jobs last month and the unemployment rate rose to 9.7% from 9.6%, according to the median estimates in a Bloomberg survey.
