US stocks push to new record highs

NYSE traders Image copyright Getty Images

(Close:) US stocks continued their recent rally, with the S&P 500 and Dow Jones closing at record highs.

The Dow Jones closed up 120.74 points at 18347.67, beating a record set in May 2015.

The S&P 500 pushed up from its record close on Monday climbing 14.98 points to 2152.14, while the Nasdaq rose 34.18 to 5022.82.

Bank shares were on the front foot once again, with Goldman Sachs rising 3.1% and Citigroup climbing 2.7%.

JP Morgan Chase was up 1.5% after announcing it would raise the pay of 18,000 hourly staff in the US, over the next three years.

Low returns on government bonds and positive June jobs data had boosted investors desire to buy stocks.

Amazon shares hit their own record high of $757.34 per share, but fell 0.7% as the company's website suffered glitches during the "Prime Day" shopping event.

Investors were also encouraged by results from aluminium producer Alcoa.

The company reported second-quarter net income of $135m, down from $140m a year earlier, but the fall was not as bad as feared and Alcoa's shares rose 5.4%.

Shares of AMC Entertainment rose 7.3% after the company announced plans to buy London-based Odeon & UCI Cinemas Group - creating the world's largest cinema chain.

American Airlines had a strong day. Its shares shot up 11.2%.

The airline announced a new plan for company credit cards, which it estimates will increase profits by $1.5bn over the next three years.