The S&P 500 stock index rose Tuesday above 1,400 for the first time since May 3 on further calls for more Federal Reserve stimulus and hopes that the European Central Bank will also take action.
There is hope that the U.S. central bank will provide further financial stimulus, partly because Boston Fed President Eric Rosengren told The New York Times that the Fed should start an open-ended bond-buying program as a way to jump-start a slumping economy.
"Feds are outlining a plan that they are leaning toward more stimulus," Peter Cardillo, chief market economist at Rockwell Global Capital, told Reuters. "When you have Fed members openly say it, it is a good, educated guess that that is the road map they are laying out."
That news, adding to the 65 percent of the 407 companies in the S&P 500 posting earnings that beat Wall Street expectations, had the index rising above 1,400 again. Fossil (Nasdaq: FOSL), MGM Resorts International (NYSE: MGM) and Chesapeake Energy Corporation (NYSE: CHK) were some of the biggest movers on Tuesday due to strong earnings.
It might be difficult for the S&P 500 to push far past that 1,400 number, though, according to Mark Newton, the chief technical analyst at Greywolf Execution Partners.
Newton told the Wall Street Journal that "stalling out looks possible over the next few days."
The Dow Jones industrial average and Nasdaq Composite were also up, to 13,199.55 and 3,023.09, respectively.