US stocks rally as energy sector leads

US stocks ended noticeably higher as a broad rise in energy sector bolstered the market.

On Tuesday, the Dow Jones Industrial Average jumped 556.79 points, or 2.13 per cent, to 26,642.59. The S&P 500 was up 42.30 points, or 1.34 per cent, to 3,197.52. The Nasdaq Composite Index increased 97.73 points, or 0.94 per cent, to 10,488.58, Xinhua news agency reported.

Shares of US energy giants Chevron and Exxon Mobil and were up 3.45 per cent and 3.31 per cent, respectively, among the best performers in the 30-stock average.

All the 11 primary S&P 500 sectors closed higher, with energy up 3.6 per cent, outpacing the rest. Materials and industrials each gained more than 2 per cent.

US-listed Chinese companies traded roughly lower, with all of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.

Wall Street pored through a slew of earnings reports and economic data.

JPMorgan Chase on Tuesday delivered earnings that beat estimates. The stock closed 0.57 per cent higher. Citigroup shares were under pressure after the company reported mixed results. Wells Fargo stock dipped 4.6 per cent after reporting a US $2.4-billion loss in the second quarter.

The estimated earnings decline for the S&P 500 is 43.8 per cent for the second quarter, according to data from FactSet as of early July.

On the data front, the Consumer Price Index (CPI) for All Urban Consumers in the United States increased 0.6 per cent in June on a seasonally adjusted basis after falling 0.1 percent in May, the US Bureau of Labor Statistics reported Tuesday. The so-called core CPI, which strips out food and energy, rose 0.2 per cent in June, its first monthly increase since February.