US stock indexes touched new record highs on Tuesday, boosted by a rally in tech stocks and gains in Ford Motor and General Motors after strong September vehicle sales. Eight of the 11 major S&P indexes were higher, led by technology and consumer discretionary sectors.
Major automakers posted higher US new vehicle sales in September, as consumers in hurricane-hit parts of the country rushed to replace flood-damaged cars. General Motors' shares rose 3.7 percent to a record high of $43.70, while Ford's stock was up 2.3 percent at $12.37.
Technology stocks have rebounded from a sharp selling seen last week, with Apple and Intel supporting Tuesday's gains. The sector has been the biggest gainer year-to-date, up 26 percent so far. "The tech stocks had it rough about 10 days ... I think they experienced profit taking where they were used as an ATM for purchases," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
"I think those days have run their course and they're starting to get some sponsorship again." Investors are also looking at upcoming quarterly earnings from big names to help justify the lofty market valuations. Third-quarter earnings for S&P 500 companies are expected to increase 5.5 percent from a year earlier, according to Thomson Reuters research, after rising a better-than-expected 12.3 percent in the second quarter.
At 12:25 am ET, the Dow Jones industrial average was up 67.17 points, or 0.3 percent, at 22,624.77, the S&P 500 was up 2.45 points, or 0.10 percent, at 2,531.57. The Nasdaq Composite was up 7.64 points, or 0.12 percent, at 6,524.36.