The Dow Jones Industrial Average reached an all-time closing high on Tuesday after U.S. retail sales data supported the narrative that the Federal Reserve is approaching its easing cycle, reining in inflation while avoiding a recession.

The S&P 500 also rose, but weaker megacap growth stocks, led by Nvidia Corp (NVDA.O), and Microsoft Corp (MSFT.O), capped the tech-heavy Nasdaq's gains.

Economically sensitive small caps extended their rally. The Russell 2000 (.RUT), scored a fifth straight day of gains greater than 1%, its longest winning streak since April 2000.

Dow transportation stocks (.DJT), also outperformed the broader indexes as investors increasingly focused on undervalued areas of the market.

Value stocks (.IVX), which have underperformed their growth peers (.IGX), and the broader S&P 500 so far this year, ended sharply higher.

According to preliminary data, the S&P 500 (.SPX), gained 35.98 points, or 0.64%, to end at 5,667.20 points, while the Nasdaq Composite (.IXIC), gained 38.29 points, or 0.21%, to 18,509.34. The Dow Jones Industrial Average (.DJI), rose 746.60 points, or 1.86%, to 40,958.32.

Source : Reuters