U.S. equities rose on Tuesday, with the S&P 500 ending at its highest level in 2-1/2 months, as an uptick in oil prices supported energy firms and a sales estimate from Best Buy allayed worries that high inflation would result in a weak holiday shopping season.
Gains at Best Buy contributed to a 1.21% increase in the S&P 500 retail (.SPXRT) index.
According to Shawn Cruz, head trading strategist at TD Ameritrade in Chicago, "if you take the continuum of income and consumers out there, the higher half of that is relatively inelastic to some costs going up to some extent or another where the bottom half is going to be more sensitive."
As a result, they will be severely impacted. "The Dollar Trees of the world actually don't have much ability to pass down those costs."
The S&P 500 SPX increased 53.64 points, or 1.36%, to 4,003.58 while the Nasdaq Composite IXIC increased 149.90 points, or 1.36%, to 11,174.41. The Dow Jones Industrial Average DJI increased 397.82 points, or 1.18%, to 34,098.1.
The S&P 500 reached its highest closing point since September 12th.
Prior to the release of the minutes from the Fed's November meeting on Wednesday, investors were also anticipating comments from St. Louis Fed Reserve President James Bullard on Tuesday.
The U.S. stock market is open for a half-session on Friday, and volume will likely decline as we approach the Thanksgiving break on Thursday.
9.45 billion shares were traded on U.S. exchanges, which is lower than the 11.75 billion average for the entire session for the previous 20 trading days.
On the NYSE, advancers outweighed decliners by a ratio of 3.40 to 1; on the Nasdaq, advancers were in the lead by a ratio of 1.56 to 1.
The Nasdaq Composite registered 108 new highs and 224 new lows, while the S&P 500 had 24 new 52-week highs and 3 new lows.
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