US markets closed at record highs as markets cheered forthcoming interest rate cuts on Tuesday.

The equity index, the Dow Jones Industrial Average, rose to a new high, surging 742.76 points or 1.85% to close at 40,954.48. 

The S&P 500 advanced 0.64% to close the session at 5,667.20. The Nasdaq Composite rose 0.2% to end the day at 18,509.34.