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S&P 500 rises to another record on strong earnings, Dow gains 130 points

The S&P 500 rose to a record high on Tuesday — ahead of a key Federal Reserve decision — as strong corporate earnings gave investors confidence in a year-end rally.

The Dow Jones Industrial Average rose 138.79 points to 36,052.63 to close at a record.

The S&P 500 added 0.3% to 4,630.65, closing at an all-time high.

The tech-focused Nasdaq Composite gained 0.3% to 15,649.60. This is the third session in a row that all three major averages closed at a record.

The small cap benchmark Russell 2000 rose slightly to close at an all-time high.

“Fundamentals are probably at the epicenter of why the stock market keeps rising,” said Jim Paulsen, chief investment strategist for the Leuthold Group.

“The earnings season overall is turning out to be much stronger than anticipated,” he added. “While many companies are warning that supply restrictions are a problem, most have nonetheless been able to raise prices, maintain strong profit margins, and take full advantage of healthy demand with greater sales results. Fears of overwhelming profit margin erosion simply did not happen.”

Reference: CNBC