The Dow Jones Industrial Average jumped nearly 0.7 per cent, or over 250 point, the tech-heavy Nasdaq Composite also rose nearly 0.7 per cent, while the benchmark S&P 500 climbed nearly 0.6 per cent

US stocks ended high on Tuesday, with an eighth weekly win still within reach as investors stayed upbeat on the prospect of interest rate cuts despite warnings those hopes are overdone.

The Dow Jones Industrial Average jumped nearly 0.7 per cent, or over 250 points — its fifth successive record close. The tech-heavy Nasdaq Composite also rose nearly 0.7 per cent, while the benchmark S&P 500 climbed nearly 0.6 per cent.

The Dow Jones Industrial Average jumped around 0.5 per cent, or nearly 200 points, while the benchmark S&P 500 and tech-heavy Nasdaq Composite each edged up nearly 0.4 per cent.

The strong gains come as Fed officials tried to quell bets on a rate cut as early as March. They said it is “premature” to be convinced the central bank is done with rate hikes and hinted its policy will still be data-driven.

In the meantime, the Bank of Japan (BoJ) decided on Tuesday to keep interest rates below zero and gave no indication of when it might exit negative levels.

But as US stocks hold onto gains, investors seem to be looking through those cautionary signs — for now. Friday’s update on the Personal Consumption Expenditures (PPE) price index, the Fed’s preferred inflation measure, will likely help make the argument for or against faster and earlier cuts.

Investors are also keeping an eye on oil prices, as more firms join BP in avoiding transits through the Red Sea after attacks on shipping in the important trade route. West Texas Intermediate (WTI) edged up to trade just below $74 a barrel while Brent crude futures traded above $79 a barrel.