There were smiles on Wall St. Tuesday as the markets had their best day of the year. The Dow Jones industrial average soared 202 points, its biggest jump of 2012. That was a 1.63% gain.
The technology-heavy NASDAQ did even better, up 61 points, or 2.22%.
The market reacted to positive earnings news from Dow bellwethers IBM and Coca-Cola. Apple reported earnings after the bell that beat analysts' estimates.
"The market has been looking for leadership and it hasn't been getting it from financials... The fact that tech companies can deliver or exceed results gives markets hope that stocks can rise, even given broader macro concerns," Nicholas Colas, chief market strategist at the ConvergEx Group told Reuters.
Investors were also buoyed by the debt negotiations in Washington, President Obama praised a GOP compromise proposal, and late in the trading session Obama suggested progress was being made towards a deal.
"Stocks are starting to bounce at least for the time being, with people wagering that there will be a resolution on the debt ceiling," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.