The S&P 500 and the Nasdaq notched record closing highs on Monday, as a jump in commodities prices boosted shares of energy and mining companies.
The Dow Jones Industrial Average was up 85 points, or 0.41%, to 20,982, the S&P 500 gained 11 points, or 0.48%, to 2,402 and the Nasdaq Composite added 28 points, or 0.46%, to 6,150.
Oil rose to the highest level in more than three weeks after top exporters Saudi Arabia and Russia said supply cuts needed to last into 2018, a step toward extending an OPEC-led deal to support prices for longer than originally agreed.
Halliburton gained 3%, while Marathon Oil added 1.8%.
The rising oil prices and housing data drove optimism about the economy and helped make financial stocks the second biggest driver for the S&P 500, behind the technology sector.
Shares of cyber security firms jumped on expectations that they would benefit from greater spending after the global “ransomware” attack that began spreading across the globe on Friday.
Shares of Fireye (FEYE.O) added 7.5%, and Symantec (SYMC.O) and Palo Alto Networks (PANW.N) both gained around 3%. The 2.3% rise in Cisco Systems (CSCO.O) was driven in partly by its security technology business.
Elsewhere, Patheon soared 33% after Thermo Fisher Scientific Inc. said it was buying the company for $7.2 billion including $2 billion of net debt.
Moody’s Corp. said it would buy Dutch business-intelligence firm Bureau van Dijk for €3 billion, or around $3.27 billion. Shares rose 1.2%.
Shares of Alphabet Inc. rose 0.4% after Waymo LLC, the driverless-car division of the Google parent, and ride-hailing startup Lyft Inc. said on Sunday they would work together to develop autonomous vehicle technology.
In Asia, equities extended gains on Tuesday in morning session after a surge in oil lifted US stock indexes to fresh highs yesterday.
Japan’s Topix rose 0.3%, while the Nikkei 225 Stock Average climbed to within two points of reaching 20,000 before pulling back. Australia’s S&P/ASX 200 climbed 0.2%. South Korea’s Kospi Index rose 0.09%.
China shares traded in Hong Kong retreated 0.6% after surging 1.6% on Monday amid optimism over Beijing’s infrastructure spending programme. The Shanghai Composite Index slumped 0.76% and the Hang Seng Index lost 0.43%.