The Dow Jones, America's main share index, powered above 13,000 for the first time yesterday, and the broader market rose to its highest level in more than six years.
"We are definitely in a bull market," said David Straus, a portfolio manager with Johnston Lemon in Washington.
"We
had a lot of hesitation at the round number of 13,000, but then it went through and we attracted some volume."
The Dow Jones industrial average rose 135.95 points, or 1.05 per cent, to 13,089.89. The Standard & Poor's 500 Index gained 15.01 points, or 1.01 per cent, to close at 1495.42. The Nasdaq Composite Index was up 23.35 points, or 0.92 per cent to 2547.89.
In the afternoon, the Dow reached 13,107.45.
Of the 30 components in the Dow, 29 finished higher. The only stock to finish down was 3M Co, which is to report its quarterly results today.
Yesterday was the 35th record close for the Dow since the beginning of last October, when it passed 12,000.
Highlights of yesterday's trading included Alcoa's shares finishing up 5.2 per cent at US$35.76, making the stock the Dow's second biggest advancer, behind IBM.
Amazon shares led the Nasdaq to its highest level since February 2001 after the internet retailer said its quarterly profit had more than doubled, beating expectations.
The stock jumped 27 per cent to end at US$56.81 - its biggest one-day advance in more than five.
Shares of IBM, the world's biggest computer services company, had their second day of gains after the company unveiled a plan for a US$15 billion share buyback and boosted its dividend.
IBM shares, which also contributed to the S&P 500's highest climb in more than six years, ended up 3.02 per cent at $101.46 on the NYSE.
Exxon Mobil was another standout, boosted by a 1.95 per cent rise in US crude oil prices to US$65.84 a barrel, after government figures showed a surprisingly large drop in petrol supply.
Exxon finished up 1.7 per cent at US$79.92 on the NYSE.
A surprisingly strong durable goods report bolstered confidence in the outlook for business spending, and the Federal Reserve's Beige Book report said regional US economies grew modestly and price increases moderated.
- REUTERS
