US stocks rose on Tuesday as a tumble in the price of oil tempered inflation concerns, reinforcing expectations that the Federal Reserve will keep interest rates unchanged at its meeting later in the day, despite calls for higher rates among some board members.
Shares of planemaker Boeing jumped almost 5 percent and were the biggest boost on the Dow industrials, as lower oil prices improved the outlook for the energy-dependent air sector. Major manufacturers General Electric and Procter & Gamble jumped more than 2 percent, also helped by hopes that moderating inflationary pressures would increase consumer spending.
GE was the biggest boost on the S&P 500. The Dow Jones industrial average gained 206.88 points, or 1.83 percent, at 11,491.03, while the Standard & Poor's 500 Index rose 22.32 points, or 1.79 percent, at 1,271.33.
The Nasdaq Composite Index climbed 38.42 points, or 1.68 percent, at 2,323.98. The decline in oil prices may also help Fed Chairman Ben Bernanke keep interest rates at the current level of 2 percent for the next several months, as the credit crisis keeps the economy in check.