Stocks were coming off a banner day Tuesday, as the Dow and S&P notched intraday and closing records. The tech-heavy Nasdaq, meanwhile, posted its best day since Nov. 7.
“Yesterday was a pivotal day on Wall Street because the bulls showed up and they bought the dip,” said 50 Park’s Sarhan. “That tells you the underlying strength from the past few years is still there.”
Wall Street also kept an eye on the energy sector as it faced pressure from falling oil prices. U.S. crude for July delivery fell 2.7 percent to $43.01 a barrel amid signs of rising production.
Oil prices are “most definitely” heading to $40 a barrel and will likely dip into the upper $30s, John Kilduff, founding partner at energy hedge fund Again Capital, told CNBC’s “Squawk Box.”
“Not only do we have a struggle with production and an ineffectual OPEC, non-OPEC production regime, but you have this overhang again that is not clearing, and so that is what this market is reacting to,” he said.
In economic new, there were no major data releases, but investors digested remarks from key Federal Reserve officials.
Boston Fed President Eric Rosengren said the current low-rate environment was likely to remain for some time, adding that low rates handicap the central bank’s ability to “offset negative shocks.”
Meanwhile, Fed Vice Chair Stanley Fischer said that while the U.S. and other nations have taken actions to strengthen their housing finance systems, more needs to be done to prevent a future crisis.
Dallas Fed President Robert Kaplan is scheduled to speak after the close Tuesday.
Treasury yields traded mixed, with the benchmark 10-year yield slipping to 2.17 percent and the two-year yield rising to 1.364 percent.