US Stocks Close In On New Highs On Stimulus Hopes

Wall Street surged on Tuesday, with its main indexes closing near record levels, helped by optimism about a potential government stimulus and bets on more signals of easy monetary policy from the Federal Reserve's final meeting of the year.

Apple was the top boost to all three US benchmarks, surging to its highest since September after a report said it plans to increase iPhone production by 30 percent in the first half of 2021.

The Russell 2000 index of smaller companies surged to a record high.

Some investors viewed the recent spike in coronavirus infections and deaths and a grim November employment report as an impetus for a quick deal on a Covid-19 stimulus bill, with economically sensitive sectors such as consumer discretionary, materials leading gains.

The S&P 500 utilities index logged its strongest one-day gain since early November.

"They have lagged, and you could see a little bit of rotation of people looking for yield," said 6 Meridian Chief Investment Officer Andrew Mies, referring to utilities stocks.

Broad gains across the stock market were a healthy sign, Mies added.

US House Speaker Nancy Pelosi invited top congressional leaders to meet later on Tuesday in an effort to finalise a massive government spending deal and reach an agreement on a new package of coronavirus relief.

The Fed is also expected to signal low-interest rates for the foreseeable future in its two-day meeting starting Tuesday. The recent coronavirus vaccine roll-out is expected to improve the central bank's 2021 outlook.

The Dow Jones Industrial Average rose 1.13 percent to end at 30,199 points, while the S&P 500 gained 1.30 percent to 3,695.

The Nasdaq Composite climbed 1.25 percent to 12,595.