US Stocks See Strong Gains For Second Day

US stocks finished up sharply for a second straight day on Tuesday, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a U.S. pandemic relief package.

Alphabet and Amazon.com Inc were among the top boosts to the S&P 500. Each were set to post fourth-quarter results after the bell, with Alphabet expected to report the cost and operating profit of its Google Cloud business for the first time.

More than 80% of reports from S&P 500 companies so far have surpassed analysts' earnings expectations, with 97% of reports from technology companies beating, according to IBES data from Refinitiv.

Investors also were optimistic as Democrats in Congress prepared to take the first steps toward fast-track passage of President Joe Biden's US$1.9 trillion Covid-19 relief package.

Adding to the upbeat mood, new cases of Covid-19 in the United States fell for a third week in a row, the first time since last September.

"Some form of the Biden proposal will pass, and there are certainly investors who are willing to look down the road and think the market and economy will look brighter," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

Unofficially, the Dow Jones Industrial Average rose 476.09 points, or 1.58%, to 30,688, the S&P 500 gained 52.37 points, or 1.39%, to 3,826.23 and the Nasdaq Composite added 209.38 points, or 1.56%, to 13,612.78.