The Dow Jones Industrial Average surged to a record high on Tuesday, breaking through levels last seen in 2007 as equities jumped 1 percent in a broad rally. Investors poured money into blue-chip stocks in expectation of more gains amid signs of a strengthening US economy. With the day's advance, the Dow has gained nearly 9 percent so far this year, ahead of the S&P 500 and Nasdaq Composite Index.
Ten of the Dow's 30 component stocks reached new 52-week highs on a day when 418 stocks hit new yearly highs on the New York Stock Exchange. The Dow is also on track to surpass the record closing high set on October 9, 2007, when it ended at 14,164.53. The Dow's forward 12-month price-to-earnings ratio was at 15.87, compared with 16.99 during the 2007 highs, according to Datastream.
The S&P 500's price-to-earnings ratio was at 13.5. Among Dow stocks hitting all-time highs on Tuesday were Walt Disney Co and 3M Co. All 10 of the S&P 500's industrial sector indexes rose. In mid-afternoon trade, the Dow Jones industrial average was up 137.37 points, or 0.97 percent, at 14,265.19. The Standard & Poor's 500 Index was up 15.18 points, or 1.00 percent, at 1,540.38. The Nasdaq Composite Index was up 38.28 points, or 1.20 percent, at 3,220.32.