On Tuesday, Wall Street's main indexes rose while U.S. Treasury Secretary nominee Janet Yellen advocated before lawmakers for a sizable fiscal relief package to help the economy out of the slump caused by the pandemic.

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At her confirmation hearing, Yellen said that the costs of a higher debt burden would be outweighed by the benefits of a big package deal. 

 

President Joe Biden also outlined a stimulus package proposal last week to the tune of $1.9 trillion, with the aims of reviving the economy and accelerating vaccine distribution. 

 

Senior portfolio manager Thomas Martin stated on Tuesday that: "Today it's really all about Janet Yellen, and the push that she is taking for stimulus," adding that the focus on stimulus "sets an underpinning for the markets to continue to move higher."

 

Bank of America (BAC.N) initially rose as it also outperformed Q4 profit estimates and joined Citigroup Inc (C.N), JPMorgan (JPM.N), and Wells Fargo & Co (WFC.N) in releasing cash reserves to cover for loan losses caused by COVID-19, underscoring its confidence in the economy. However, the stock pared gains and was last about flat.

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U.S. bank Goldman Sachs Group Inc's (GS.N) Q4 profit more than doubled, vastly outperforming estimates at its underwriting and trading business, but its shares also gave up early gains. 

 

Optimism of fast economic recovery, which has been fueled by vaccine distribution and the sizable fiscal stimulus package, led to Wall Street's main indexes reaching record highs. 

Economy-linked energy (SPNY) led the way as eight of 11 S&P sectors advanced. Meanwhile the consumer staples (SPLRCS), real estate (SPLRCR), and defensive utilities (SPLRCU) were the only ones in the red.

Unofficially, the Nasdaq Composite (IXIC) rose 196.10 points (+1.51%) to 13,194.60, while the S&P 500 (SPX) added 30.63 points (+0.81%), to 3,798.88 and the Dow Jones Industrial Average (DJI) gained 117.84 points, (+0.38%), to 30,932.1.

Meanwhile, General Motors (GM.N) shares skyrocketed as one of the S&P 500's best performers following the agreements of self-driving car marker Cruise, which the automaker is a majority shareholder, to partner with Microsoft (MSFT.O) and speed up the commercialization of self-driving vehicles.

Tesla Inc (TSLA.O) shares rose as a consequence of Jefferies raising its earnings estimates ahead of next week's Q4 results for the electric-car maker.

Shares of Boeing Co (BA.N) also inched up following Canada's decision to lift a near two-year flight ban on its 737 MAX model. The ban came as a result of two fatal crashes involving the model, and next week a final clearance from Europe is expected to resume flying the jet.

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