Investing.com - U.S. stocks rose across the board on Tuesday after a widely-watched gauge of consumer confidence beat expectations and hit 6-year highs.
At the close of U.S. trading, the Dow 30 rose 0.56%, the S&P 500 index rose 0.44%, while the Nasdaq rose 0.19%.
The Conference Board reported that its consumer confidence index increased to 82.3 this month, the highest since January 2008, from 78.3 in February. Analysts had expected the index to tick up to 78.6.
The report showed that consumers expect the economy to continue improving and believe it may gather momentum in the coming months.
Separately, the Commerce Department said new home sales fell by the most in five months in February, indicating headwinds still face the housing sector.
Sales of new homes fell by 3.3% in February to 440,000 units, the weakest level since last September. Still, analysts were calling for a decline of 4.9%.
January's sales were revised down to a 455,000-unit pace from the previously reported 468,000-unit rate.
Also on Tuesday, a report on U.S. housing showed that prices rose slightly less than expected in January.
The Standard & Poor’s/Case-Shiller home price index rose 13.2% in January from a year earlier, compared to forecasts for a 13.3% gain.
Despite the hit-or-miss housing indicators, stocks rose after investors digested the data and concluded the U.S. economy continues to recover despite lingering headwinds.
Leading Dow Jones Industrial Average performers included Cisco Systems Inc (NASDAQ:CSCO), up 3.64%, International Business Machines (NYSE:IBM), up 3.63%, and Merck & Company Inc (NYSE:MRK), up 2.61%.
The Dow Jones Industrial Average's worst performers included Nike Inc (NYSE:NKE), down 1.62%, Goldman Sachs Group Inc (NYSE:GS), down 1.51%, and Visa Inc (NYSE:V), down 0.96%.
European indices, meanwhile, finished higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 1.32%, France's CAC 40 rose 1.59%, while Germany's DAX rose 1.63%. Meanwhile, in the U.K. the FTSE 100 rose 1.30%.
On Wednesday in the euro zone, Germany is to release a report on Gfk consumer climate.
The U.S. is to release data on durable goods orders, a leading indicator of production.