By Mike Bird and Akane Otani

U.S. stocks rose Tuesday, boosted by shares of financial and industrial companies.

The Dow Jones Industrial Average rose 54 points, or 0.3%, to 19941. The S&P 500 gained 0.3%, and the Nasdaq Composite rose 0.4%.

The Dow industrials have risen nearly 9% since Election Day, as investors betting on fiscal stimulus and tax cuts under President-elect Donald Trump scooped up shares of financial and industrial companies while largely selling government bonds. Many analysts and investors believe stocks will continue climbing throughout the year, bolstered by a strengthening economy and the prospect of pro-growth policies under the new administration.

With many of thepotential policies "still very much a work in progress, " corporate earnings will be a key driver of stocks in the coming weeks, said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

"Equities have begun the year in somewhat of a wait-and-see mode following the robust runup since the election," Mr. Sandven said. "Now we have to watch for fourth-quarter results."

On Tuesday, the S&P 500 financials sector rose 0.5%, with Navient, American Express and Allstate among the biggest gainers. The industrials sector added 0.5%, lifted by United Continental Holdings, Delta Air Lines and Southwest Airlines.

Meanwhile, Goldman Sachs Group -- one of the biggest contributors to the Dow industrials' gains since Election Day -- pulled back 0.4% after Citigroup gave the stock a "sell" rating. Shares of Goldman are up more than 30% since Nov. 8.

Some analysts say U.S. stocks could get an additional boost this year frominflation, which has recently begun to pick up again.

"This inflation is quite healthy for U.S. equities, particularly some sectors like banks and financials," said Nandini Ramakrishnan, global market strategist at J.P. Morgan Asset Management.

U.S. government bonds were relatively steady. The yield on the 10-year U.S. Treasury note was at 2.374%, compared with 2.377% Monday, according to Tradeweb. Yields fall as bond prices rise.

Elsewhere, the Stoxx Europe 600 index rose 0.1%. The U.K.'s FTSE 100 added 0.5%, on track for its ninth consecutive record. The index tends to rise as sterling falls, since the companies listed on the index make most of their revenue abroad.

If the index closes at another record high Tuesday, it would be its longest streak of records since the nine days ending Jan. 16, 1987, according to the WSJ Market Data Group.

Earlier, Japan's Nikkei Stock Average fell 0.8%, the Shanghai Composite Index fell 0.3% and Hong Kong's Hang Seng closed up 0.8% in its fourth consecutive session of gains.

Write to Mike Bird at Mike.Bird@wsj.com and Akane Otani at akane.otani@wsj.com

(END) Dow Jones Newswires

January 10, 2017 11:25 ET (16:25 GMT)

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