S&P 500, Dow Closed at Fresh Records

U.S. stocks ended higher on Tuesday with the Dow Jones Industrial Average and S&P 500 finished at a record, as upbeat corporate results from Alcoa boosted risk appetite. The Dow Jones Industrial Average added 123.37 points, or 0.68%, to 18,350.30. The S&P 500 climbed 14.50 points, or 0.68%, to 2,151.66. The Nasdaq Composite advanced 33.72 points, or 0.68% to 5,022.36.

Treasury prices dropped, pushing yields sharply higher, on Tuesday as government bonds succumbed to selling pressure amid a record-setting spate of buying in U.S. equities. the benchmark 10-year Treasury yield rose 7.8 basis points to 1.512%.

Investors have abandoned bets that the Federal Reserve could cut interest rates this summer. The solid June jobs number, which showed the U.S. economy created 287,000 jobs last month, has helped to revive expectations — however slight — that the central bank could raise interest rates at the end of the summer.

Oil futures settled higher Tuesday, rebounding from a two-month low as a report from the Organization of the Petroleum Exporting Countries revealed forecasts for higher oil demand and lower production next year. August West Texas Intermediate crude rose $2.04, or 4.6%, to settle at $46.80 a barrel. September Brent crude gained $2.22, or 4.8%, to $48.47 a barrel.