The Dow surged to another record on Tuesday on bullish reaction to positive earnings reports amid optimism over the rising likelihood of US interest rate cuts.

The blue-chip index piled on 1.9 percent or more than 740 points to finish at 40,954.48, posting a second straight record.

The broad-based S&P 500 gained 0.6 percent to 5,667.20, also a record, while the tech-rich Nasdaq Composite Index advanced 0.2 percent to 18,509.34.

The records were driven partly by outsized gains for Bank of America and Dow member UnitedHealth Group following earnings reports, as well as an ongoing rotation of funds towards smaller companies that have underperformed in 2024 but are expected to be boosted by Federal Reserve interest rate cuts.

Besides UnitedHealth, the Dow's biggest gainers included industrial giants Boeing and Caterpillar. (AFP)