As US results increase, stocks rise and the dollar weakens for a third day

The door was opened for the European Central Bank to implement a larger rate hike than anticipated this week as shares surged and the currency fell for a third straight day on Tuesday, lifting a measure of global stocks higher.

As the U.S. corporate earnings season heats up, stocks on Wall Street surged in a widespread rise, mirroring their European counterparts. Each of the 11 major S&P sectors also rose.

After reporting results that above forecasts but reduced its full-year estimate due to a stronger currency, Johnson & Johnson shares increased by 0.20 percent.

Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida, said, "Johnson & Johnson came out and beat on all the lines today, so we are getting in the middle of this earnings season, some reports that say things are OK."

"Since we are in this trading range, there will be days when everyone goes on a shopping binge."

The Nasdaq Composite increased 241.99 points, or 2.13 percent, to 11,602.04; the S&P 500 increased 74.31 points, or 1.94 percent; and the Dow Jones Industrial Average increased 522.31 points, or 1.68 percent, to 31,594.92.

Equities fell well short of their highs on Monday, while Wall Street stocks also finished lower as a result of a wave of profit-taking following a report that Apple planned to restrict its hiring and spending growth in 2019.

The global MSCI stock market index increased 1.56 percent and the pan-European STOXX 600 index increased 1.47 percent.

The euro is on track to experience its largest one-day percentage gain in nearly two months thanks to a Reuters report that the European Central Bank (ECB) was considering raising interest rates by 50 basis points at its meeting on Thursday rather than the 25 basis points many market participants had anticipated.

The U.S. dollar, which last week reached a two-decade high, is on track for its third straight session of falls due to fading expectations that the U.S. Federal Reserve will resort to a 100 basis points raise at its meeting next week.

The euro increased to $1.0241 by 0.99 percent, while the dollar index decreased by 0.828 percent.

Benchmark 10-year notes' price recently dropped 13/32 to yield 3.006% from 2.96% late on Monday.

The Bank of Japan is slated to meet on Thursday along with the ECB, but little much is anticipated from the relatively dovish central bank.

A day after closing about 5% higher, crude prices were marginally down in choppy trading as tight supplies partially countered worries about a potential recession that may dampen on demand.

Recently, U.S. crude prices dropped by 0.56 percent to $102.03 a barrel, while Brent prices were down by 0.44 percent for the day to $105.80.