Investors brushed off early jitters about a potential slowdown in China and pushed the Dow to its highest close of the year.
The Dow Jones industrial average rose 38.16 points, or 0.3 percent, to 14,127.82. The index is a fraction of a percentage point away from its record close of 14,164, reached on Oct. 9, 2007.
Stocks dropped at the opening bell and stayed lower most of the morning amid concern that new steps introduced by the Chinese government to cool the booming housing market in the world’s second-largest economy.
Chinese markets were dragged down by housing stocks, which fell sharply after the country’s cabinet ordered new measures to rein in home prices.