Dow books near 200-point gain Tuesday as stock extend modest 2023 rally

U.S. stocks closed higher Tuesday, shaking off earlier weakness to end near the session’s high, while extending a modest advance in the first two weeks of 2023. The Dow Jones Industrial Average
DJIA,
+0.56%
gained about 187 points, or 0.6%, ending near 33,705, slightly below the session’s high. The S&P 500 index
SPX,
+0.70%
advanced 0.7% and the rate-sensitive Nasdaq Composite Index
COMP,
+1.01%
closed up 1%, according to FactSet. While investors didn’t hear much from Federal Reserve Chairman Powell, who was speaking Tuesday from Sweden, on the central bank’s next likely policy steps, stock-market bulls hoping for a soft landing for the economy were able to add to modest gains so far in January. Investors will be tuned into a monthly update on inflation on Thursday from the consumer-price index, which in recent months has shown a retreat from a peak annual rate above 9% this summer. Corporate earnings season also kicks off with major banks posting fourth-quarter results starting Friday. The Dow was up 1.7% on the year through Tuesday, while the S&P 500 gained 2.1% and the Nasdaq rose 2.6%.