The S&P 500 index rose above 2,700 for the first time on Wednesday and other major indexes hit record closing highs as technology stocks climbed after signs of robust economic growth.
Stocks added slightly to gains late, with some support from minutes from the Federal Reserve's last policy meeting showing the US central bank would likely stick to gradual interest rate hikes this year.
“They reiterated gradual rate increases, so that's steady as she goes, which the stock market seems to like,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Earlier in the session, data showed US factory activity increased more than expected in December, a sign of economic momentum at the end of 2017. Meanwhile, manufacturing surveys pointed to a strong start for the European economy.
For technology stocks, Alphabet Inc, IBM and chipmakers were among the biggest drivers. The S&P 500 tech index, the best-performing S&P sector in 2017 with a 37 per cent jump, ended the day up 1.1 per cent.
US chipmaker stocks surged for a second straight session, with the Philadelphia Semiconductor index up 1.7 per cent in its strongest two-day performance since June 2016.
“The (recent) selloff in tech stocks may have made that group look attractive today given that there's still significant growth potential there both short term and long term,” Hellwig said.
The Dow Jones Industrial Average rose 98.67 points, or 0.4 per cent, to 24,922.68, the S&P 500 gained 17.25 points, or 0.64 per cent, to 2,713.06 and the Nasdaq Composite added 58.63 points, or 0.84 per cent, to 7,065.53.
The Cboe Volatility Index, better known as the VIX and a popular options-based gauge of expected near-term price volatility, closed at 9.15, just shy of its record low close of 9.14 on November 3.
Gains in energy and healthcare also boosted the market. The S&P energy index gained 1.5 per cent while S&P healthcare rose 1 per cent.
Intel Corp ended down 3.4 percent. The company acknowledged a report that a design flaw in its chips could let hackers steal data but said it was working on a solution that would not significantly slow computers.
Rival chipmaker Advanced Micro Devices climbed 5.2 per cent. Nvidia Corp gained 6.6 per cent and Micron Technology Inc rose 3 per cent. Oracle Crop shares were up 2.3 per cent after Morgan Stanley upgraded its rating on the business software maker.
Advancing issues outnumbered declining ones on the NYSE by a 1.47-to-1 ratio; on Nasdaq, a 1.45-to-1 ratio favoured advancers. About 7.1 billion shares changed hands on US exchanges. That compares with the 6.3 billion daily average for the past 20 trading days, according to Thomson Reuters data.