Dow climbs to 5th straight record close, as rate-cut hopes underpin sentiment

U.S. stocks closed higher Tuesday, with the Dow Jones Industrial Average notching a fifth straight record close and the S&P 500 closing just shy of its peak, as investors keep cheering the chances of Federal Reserve rate cuts next year and an economy that keeps chugging.

How stocks traded

• The Dow Jones Industrial Average
  DJIA
  closed up 0.7% to a new record high in its ninth consecutive trading day of gains, according to preliminary data from FactSet. The index scored its longest winning streak since July 26, when the market rose for 13 straight trading days.

• The S&P 500
  SPX
  finished 0.6% higher.

• The Nasdaq Composite
  COMP
  ended 0.7% higher.

On Monday, the Dow eked out a record close, while the S&P 500 gained 0.5% and the Nasdaq Composite rose 0.6%.