Stock indexes close higher as consumer confidence increases

Banks and other financial companies led U.S. stock indexes sharply higher Tuesday, snapping an eight-day losing streak for the Dow Jones industrial average.

The rally was broad, with materials and industrial companies among the biggest gainers. Energy stocks notched a big gain as crude oil prices moved higher.

The market got a boost from new data showing that consumer confidence in the U.S. hit its highest level since 2000.

Investor optimism that Congress and the White House are pivoting to tax cuts and other business-friendly policy proposals after spending recent weeks focused on health care also helped send the market higher, said JJ Kinahan, chief market strategist at TD Ameritrade.

“The consumer confidence number was really good, but more importantly, it seems like both sides of the aisle do want to get something done around tax reform,” Mr. Kinahan said. “That’s all the market is really hanging its hat on.”

The Dow rose 150.52 points, or 0.7 percent, to 20,701.50. The 30-

company average’s decline in the previous eight seesions was its longest slide in more than five years. The Standard & Poor’s 500 index added 16.98 points, or 0.7 percent, to 2,358.57. The Nasdaq composite gained 34.77 points, or 0.6 percent, to 5,875.14.

Bond prices edged lower. The 10-year Treasury yield rose to 2.42 percent from 2.38 percent.

Since Donald Trump’s presidential election win last November, investors have been optimistic that the administration would deliver on promises to slash taxes, loosen regulations for companies and institute other business-friendly policies. Republicans’ failure to repeal the Affordable Care Act last week dashed some of that optimism, pulling down stocks. But this week, Republicans appear to be shifting their focus back on tax cuts, among other issues.

“The market is sort of in a holding pattern waiting for additional clarity from the administration on corporate tax reform,” said Nadia Lovell, U.S. equity strategist at J.P. Morgan Private Bank. “We do view the pivot away from health care reform on Friday as an overall net positive.”

Trading got off to a downbeat start Tuesday as investors weighed the latest batch of company earnings news. But the market livened up around midmorning when the Conference Board said its consumer confidence index rose this month to its highest level in more than 16 years.