US stock indexes climbed to record numbers as investors piled into healthcare stocks and the Cypriot government got an extra year's reprieve on its debts, though investors pointed to several signs for caution on the horizon.
The Dow Jones Industrial Average advanced 60 points, or 0.4 per cent, to 14633 in late afternoon trading Tuesday, notching a new intra-day record. The Standard & Poor's 500-stock index rose five points, or 0.3 per cent, to 1567, while the Nasdaq Composite climbed nine points, or 0.3 per cent, to 3248.
Leading the gains were healthcare stocks, already the best-performing sector of the year. UnitedHealth Group topped the Dow gainers, rising 4.8 per cent after the announcement of new government rates indicated companies running Medicare Advantage plans will get significantly more money than originally expected.
The government move, which analysts said reflected a "best-case scenario" for health insurers following their lobbying effort in Washington, also pushed up shares of Humana, Aetna, Cigna and DaVita HealthCare Partners, each of which rose 4 per cent or more.
