NEW YORK — The stock market got a big lift Tuesday from a faraway place: Australia.
The Dow Jones industrial average jumped 132 points, and all major indexes rose more than 1 percent as the Australian central bank’s decision to raise interest rates boosted investor optimism about the global economy. The Dow is up 244 points in two days, its best back- to- back gain since mid-July.
Investors’ show of confidence ahead of a flood of corporate earnings reports came as Australia became the first major country to raise interest rates since the onset of the financial crisis last year. The move signals that policymakers see the country’s economy as strong enough to withstand higher borrowing costs. That touched off hopes that other economies might also be growing.
Australia’s decision dented demand for the U.S. dollar, which, in turn, raised commodities prices. U.S. energy and materials stocks jumped as oil rose and gold reached a record high.
Investors’ upbeat tone is a departure from the past two weeks, when disappointing reports on unemployment, manufacturing and consumer sentiment gave stocks their first consecutive weekly drops since July. Investors now seem inclined to grab hold of any good news, and their shifting sentiment has led to some mild volatility.
The market’s climb also came as some investors ratcheted up expectations for companies’ earnings for the July- September quarter.
The Dow rose 131.50, or 1.4 percent, to 9,731.25 after rising 112 Monday. It was the Dow’s biggest gain since Aug. 21 and leaves the index less than 300 points from the benchmark of 10,000. The Dow’s two-day rise is its biggest since July 16.
The Standard & Poor’s 500 index rose 14.26, or 1.4 percent, to 1,054.72, while the Nasdaq composite index rose 35.42, or 1.7 percent, to 2,103.57.
