Stocks remained strong in midday trading on Tuesday, as investors looked beyond Italy's rating downgrade and instead focused on an upcoming monetary policy statement from the U.S. Federal Reserve on Wednesday, with renewed hopes that the Fed will stimulate the economy.
At noon, the Dow Jones industrial average was up 121 points or 1.1 per cent, to 11,522. The broader S&P 500 was up 14 points or 1.2 per cent, to 1218.
The gains were broad, but defensive stocks tended to lead the way higher. Utilities showed the biggest gains, rising 2 per cent. Health care stocks rose 1.7 per cent and telecom services rose 1.5 per cent.
Meanwhile, economically cyclical industrials were the biggest laggards, rising just 0.6 per cent. Financials rose 1.2 per cent.
In Canada, the S&P/TSX composite index was up 168 points or 1.4 per cent, to 12,340.
Materials showed the biggest gains, rising 2.4 per cent -- with gold producers looking exceptionally sharp after the price of gold rebounded above $1,800 (U.S.) an ounce, up more than $25. Telecom services rose 1.8 per cent, energy stocks rose 0.7 per cent and financials rose 0.6 per cent.