A broad rally lifted the S&P 500 and Dow industrials to record highs on Tuesday, with a sharp rebound in crude prices boosting energy shares, while the Nasdaq turned positive for the year.
Cyclical sectors like technology, materials and energy posted the largest gains on the S&P, backed by the view that the U.S. economy, despite a slow start to the year, is on solid footing.
Cyclicals are seen taking the lead in stocks for the rest of the year after utilities, telecoms and consumer staples led the way in the first half.
U.S. stocks closed higher Tuesday as fears eased over Brexit and Japan signaled more economic stimulus.
The S&P 500 moved higher in record territory and the Dow Jones industrial average closed at a new all-time high.
The Dow Jones industrial average closed 120.74 points higher, or 0.66 percent, at 18,347.67, with Goldman Sachs leading advancers and Wal-Mart the greatest laggard.
The S&P 500 rose 14.98 points, or 0.70 percent, to close at 2,152.14, with energy leading seven sectors higher and utilities lagging.
Asian shares came within reach of testing their 2016 peak on Wednesday as prospects of solid U.S. growth and accommodative economic policy in major countries whet investors risk appetite damaged by uncertainty from Brexit.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent in early trade to 426.62, just below its year-to-date high of 428.22. Japan's Nikkei gained 1.9 percent.
MSCI's broadest gauge of the world's stock markets has recovered all the losses after Britain's referendum to hit its highest level in over a month.
"A while ago, everything looked so uncertain on Brexit. But now the UK looks set to have a new prime minister and negotiations may begin earlier. That is soothing investor sentiment," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
Reference: Reuters, CNBC
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