Tech stocks pushed Wall Street higher on Tuesday as positive US factory data fueled optimism around an economic rebound, while investors looked for more stimulus from the Federal Reserve as the central bank kicks off a two-day meeting.

At 9:56 am ET, the Dow Jones Industrial Average was up 125.30 points, or 0.45 percent, at 28,118.63, the S&P 500 was up 30.93 points, or 0.91 percent, at 3,414.47. The Nasdaq Composite was up 168.81 points, or 1.53 percent, at 11,225.46.

Expectations from the Fed have increased amid a stalemate in talks for fiscal relief and economic reports suggesting an uneven recovery from the coronavirus-induced recession.

Data on Tuesday showed US factory output increased strongly in August. Separately, US import prices increased more than expected for the same month, supporting the view that inflation pressures were building up.

Asian equities advanced on Tuesday and the dollar slipped, with investor sentiment supported by Chinese data and optimism about COVID-19 vaccines.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, for a fourth straight day of gains, up nearly 3 percent so far this year.

E-Mini futures for the S&P 500 put on 0.2 percent, reversing early losses, while EUROSTOXX 50 futures eased 0.2 percent.

Chinese blue chips added 0.7 percent, buoyed by data showing China’s industrial output rose 5.6 percent in August from a year ago, expanding for a fifth straight month. The yuan climbed to a 16-month high. 

“The activity data today shows that the recovery in the private sector gained momentum in August. The recovery in China has become more balanced and broad-based,” HSBC economists said in a report.

Japan’s Nikkei shed 0.5 percent, while South Korean shares were 0.5 percent higher and Australia’s S&P/ASX 200 index eased 0.2 percent.

Japanese Chief Cabinet Secretary Yoshihide Suga won a ruling party leadership vote, paving the way for Japan’s first change of leader in nearly eight years.

Strategists expect Japanese equities to take support from Suga’s win.

“He’s seen as someone who’s particularly stock market friendly. The fact that we’ve got political certainty for the next two years from someone who’s connected to the free market is going to be good news for Japan,” said Jim McCafferty, joint head of Asia Pacific equity research at Nomura.

E-Mini futures for the S&P 500 slipped 0.3 percent, while EUROSTOXX 50 futures eased 0.2 percent

So far this year, gains in Asia have been led by technology stocks.

“From an asset class point of view, if you require to generate any income from your investment portfolio, then equities is one of the few places you can do that because bond yields are so low,” said McCafferty, who prefers North Asian companies due to their stronger balance sheets.

He said investors who didn’t want to pay lofty valuations of US stocks could look to fast-growing tech companies in Taiwan and South Korea.

US retail sales figures from August are due Wednesday.

Investors will also look to central banks for direction, with the US Federal Reserve starting a two-day policy meeting on Tuesday, the first since unveiling a landmark shift to a more tolerant stance on inflation in August.

The Bank of Japan and the Bank of England announce their respective policy decisions on Thursday.