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New York - US stocks rose solidly on Tuesday behind higher oil prices and speculation the Federal Reserve will conclude a meeting the next day with a dovish statement on future interest rate increases.
The Dow Jones Industrial Average rose 282.01 points (1.78%) to 16 167.23.
The broad-based S&P 500 gained 26.55 (1.41%) at 1 903.63, while the tech-rich Nasdaq Composite Index advanced 49.18 (1.09%) to 4 567.67.
The gains came as US oil prices rose 3.7% to $31.45 a barrel. Analysts said strong earnings by 3M and other Dow members also lifted sentiment.
Market watchers also expect the Fed to signal on Wednesday, after a two-day meeting, a go-slow approach to future rate hikes after lifting benchmark interest rates in December for the first time in more than nine years.
"There's some optimism ahead of the Fed tomorrow that we're going to hear some more dovish commentary and that future rate hikes will be data-dependent," said Michael James, managing director of equity trading at Wedbush Securities.
Petroleum-linked shares rose with oil prices. Dow members ExxonMobil and Chevron rose a respective 3.6% and 4.0%, while oil-services company Schlumberger advanced 3.2%.
Other commodity-linked names gained, including copper miner Freeport McMoRan, which jumped 6.6%, and aluminum producer Alcoa, which rose 5.0%.
Banks were also strong, with JPMorgan Chase, Citigroup and Bank of America all adding around 2.5%.
Dow component 3M leaped 5.2% after reporting fourth-quarter earnings of $1.66 per share, three cents above expectations.
Johnson & Johnson jumped 4.9% after reporting fourth-quarter net income came in at $1.44 per share, two cents above expectations.
Among other Dow members, Procter & Gamble rose 2.6% following its earnings report, while DuPont climbed 0.6%.
Insurer AIG rose 1.0% as it announced plans to float nearly 20% of United Guaranty Corporation and a number of other streamlining moves, along with $25bn in capital returns to shareholders. The moves follow pressure from activist investors Carl Icahn and John Paulson.
FirstMerit soared 18.4% on news it will be acquired by Huntington Bancshares for $3.4bn in a deal that unites two banks in the midwestern state of Ohio. Huntington Bancshares fell 8.5%.
