Investing.com – The Dow was headed towards a seven-day winning streak on Tuesday as fresh fiscal stimulus from China and suspended tariffs on imports from Mexico helped boost investor sentiment.
The Dow gained 121 points or 0.5% by 9:38 AM ET (13:38 GMT), while the S&P 500 rose 17 points or 0.6% and tech-heavy Nasdaq composite surged 63 points or 0.8%.
President Donald Trump delayed a decision on import tariffs on Mexico on Friday, although investors remain on edge after the administration threatened further action against China on Monday. Trump also took to Twitter again to rail against the Federal Reserve for keeping interest rates (and, indirectly, the dollar's exchange rate) too high.
Overnight, Chinese stocks rose by the most in a month after state-owned media reported that Beijing would look to accelerate investment in infrastructure projects through new special-purpose bonds issued by local government.
"The market right now is continuing to move to the upside. There is a combination of factors playing, there was Mexico tariffs being lifted, and the Chinese stimulus plan today," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
FANG stocks were higher after the opening bell, with Facebook (NASDAQ:FB) gaining 2.6%, Apple (NASDAQ:AAPL) rising 1.4%, Netflix (NASDAQ:NFLX) up 0.9%, Google (NASDAQ:GOOGL) up 1.7%.
Broadcom (NASDAQ:AVGO) jumped 2.5% after news that the chipmaker has entered into a two-year supply deal with Apple to provide radio-frequency, front-end component and modules for various Apple products, while AMD fell 1% after surging to a 13-year high on Monday.
Beyond Meat (NASDAQ:BYND) slumped 13.5% after JP Morgan downgraded the stock to “neutral” from “overweight” as the stock is “beyond our price target” of $120, CNBC reported. It's still trading at over five times its IPO price, however.
In commodities, gold futures fell 0.1% to $1,328.35 a troy ounce, while crude jumped 0.9% to $53.72. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 96.718.
-Reuters contributed to this report.