- 8 of 11 major sectors stay in the positive territory ahead of the closing bell.
- Financials continue to underperform amid Italy’s budget crisis.
- DJIA remains on track to close the fourth straight session higher.
After struggling to rise decisively on Monday despite the announcement of the new NAFTA pact, the Dow Jones Industrial Average gained traction on Tuesday and reached a fresh all-time high at 26,824.78 points. As of writing, the DJIA was up 0.57%, or 151.72 points, on the day at 26,802.93 points.
Although the negative impact of the Italian debt crisis continues to weigh on the financials index, a broad-based positive sentiment reflected by eight of eleven major sectors looking to close the day in the positive territory shows that investors are focusing on the positive developments. In fact, trade-sensitive materials and industrials indexes are now up 0.5% and 0.35%. Additionally, a sharp upsurge witnessed in Intel shares helps the technology sector on Tuesday to provide an additional boost to Wall Street.
Meanwhile, the CBOE Volatility Index, Wall Street’s fear gauge, was last seen down 2.5% on the day to confirm stronger appetite for risk.
Commenting on the poor performance of financials, “Some of the flat-modestly lower sentiment could be a spillover from the situation in Italy and with banks being hit rather hard there is some potential spillover,” Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago, told Reuters.
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