U.S. stocks climbed for the second straight trading day on Tuesday. Traders gained the confidence required to take the risks necessary to expand their trading portfolios.
The advances for U.S. stocks came as President Obama and the Republicans in Congress led by John Boehner have started to agree on more of the issues which have been dominating the headlines lately.
The Dow Jones rose by 0.87% to 13,350.96. The S&P 500 gained 1.15% to 1,446.79. The Nasdaq climbed 1.46% to 3,054.53.
Traders have become more confident when it has come to the leading U.S. indices on the progress which has been made with the U.S. budget. Both sides realize that there is too much to lose if a budget agreement is not reached. This is why they have come to agree on a certain amount of issues.
Amongst the biggest gainers yesterday were Facebook, Apple and Citigroup. The advances for Apple came despite the fears of growing competition from Samsung and Google.
There has been a rally in stocks since the beginning of the current trading week, as traders have realized that they have been overvalued. Therefore, now is seen as the perfect opportunity to buy into the top equities. This does not mean that they will keep on rising, but does show more confidence among traders.
There is a lot of data from the U.K. and the Eurozone which will be vital to follow today. This includes the MPC Meeting Minutes from the U.K. at 09:30 GMT and the German Ifo Business Climate at 09:00 GMT.