The Dow was up as much as 259 points at the highs of the session Tuesday and closed up 157 points, marking its first two-day gain in two-and-a-half weeks. The S&P gained more than 21 points, marking its first back-to-back gain in six weeks. The Nasdaq closed up 43 points.
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Energy names also got a boost, after oil bounced, bargain hunters decided Tuesday was the day to scoop up oil. It settled at $37.35, its highest in a week.
With less than 24 hours until the Fed releases its rate hike decision, the Fed fund futures pits were pricing in a 79% likelihood we will see the central bank tighten the screws and hike rates for the first time in 9.5 years.
Look who's getting swept up in the bull run: financials are on a tear. Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC) and Citigroup (NYSE:C) all saw gains for the day. Higher rates often mean better margins for banks and insurance companies
Consumer names felt green Tuesday, too. Stocks like McDonald's (NYSE:MCD), Kimberly Clark (NYSE:KMB), Dr. Pepper Snapple Group (NYSE:DPS) and Kroger (NYSE:KR) all soared to new highs Tuesday.
Valeant (NYSE:VRX) caught a break Tuesday. Shares surged 16% after the pharmaceutical giant inked a new pricing and distribution deal with Walgreens (NYSE:WAG), the biggest pharmacy chain in the U.S. This after Valeant severed ties with speciality pharmacy network Philidor because investors raised concerns. Valeant's stock is down more than 50% in the past three months.