(Reuters) - The Dow and S&P 500 closed at record highs on Tuesday, lifted by further gains in healthcare shares and hopes for a stronger global economy.
The S&P 500 scored its fourth straight day of gains.
Actavis Plc, Gilead Sciences and other biotechs were among the biggest drivers, a day after Allergan agreed to be bought by Actavis. The Nasdaq biotech index rose 2.1 percent.
The S&P health care index added 1.6 percent. Shares of Actavis were up 8.7 percent at $269.60, helped by bullish analyst notes, while Gilead's stock rose 3.3 percent to $103.71 percent.
"A little bit of a risk trade is coming back on, and those are the areas for the M&A," said Uri Landesman, president of Platinum Partners in New York. "It's a very, very good environment to buygrowth
, so I don't quibble with the notion that there's going to be more M&A."
Among the biggest boosts to the Dow, shares of UnitedHealth were up 1.8 percent at $98.19.
Further supporting stocks, news of a snap election and a delayed tax increase in Japan strengthened hopes for new stimulus, a day after data showed Japan back in recession. In Europe, German analyst and investor sentiment advanced this month for the first time in almost a year.
Benign U.S. inflation data also helped.
The Dow Jones industrial average rose 40.07 points, or 0.23 percent, to 17,687.82, a record high. The S&P 500 gained 10.48 points, or 0.51 percent, to 2,051.8, its biggest one-day move since Nov. 5.
The Nasdaq Composite added 31.44 points, or 0.67 percent, to 4,702.44.
Actavis was the S&P's biggest percentage gainer; the largest decliner was Urban Outfitters, down 6.6 percent at $28.79, following results.
On the Nasdaq 100, the largest gainer was Dish Network, up 3.9 percent to $67.85, while the largest decliner was Staples, down 1.6 percent at $12.76.
Among the most active NYSE stocks were Petrobras, up 0.96 percent at $9.42, and General Electric, up 1.50 percent at $27.01. On the Nasdaq, Apple, up 1.3 percent to $115.47, was among the most active.
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NYSE advancers outnumbered decliners 1,862 to 1,217, for a 1.53-to-1 ratio; on the Nasdaq, 1,645 issues rose and 1,079 fell for a 1.52-to-1 ratio.
The S&P 500 was posted 77 new 52-week highs and one new lows; the Nasdaq Composite recorded 95 new highs and 56 new lows.
(Editing by Nick Zieminski)