The benchmark S&P/ASX200 (^AXJO) finished Tuesday up 1.88 per cent at 6,057.60 points after rocketing higher in morning trade.
The broader All Ordinaries index (^AORD) was also higher, up 1.86 per cent at close of trade, taking it to 6,166.50 points.
Technology and energy firms pushed the indexes higher with Afterpay up 6.5 per cent and Aristocrat and Mesoblast up 7 per cent. All four major banks also posted strong gains.
What happened at midday?
The ASX200 was coasting at 1.88 per cent higher in midday trade, up to 6,037.70 points at 12:33pm AEST.
The All Ordinaries was also up 1.85 per cent at 6,165.70 points.
ASX investors were waiting for the Reserve Bank of Australia’s (RBA) August interest rate decision at 2:30pm AEST. Some economists had suggested the RBA may scrap its former statement that it would not take interest rates below 0.25 per cent, and instead cut rates to 0.10 per cent.
What happened this morning?
The ASX200 rocketed higher at the open on Tuesday, up 1.99 per cent at 10:19am AEST.
That brought it to 6,044.10 points.
The All Ordinaries also lifted 1.99 per cent higher to 6,174.40 points.
Investors were waiting on the latest retail sales figures, which showed retail spending dropped 3.4 per cent in the June quarter. However, over the month of June, spending rose by 2.7 per cent - higher than the 2.4 per cent expected.
Iron ore prices leapt 5 per cent overnight to US$116 a tonne.
What happened last night?
On Wall Street, the Dow Jones Industrial Average rose 0.89 per cent to end at 26,664.4 points while the S&P 500 gained 0.72 per cent to 3,294.61. The Nasdaq Composite climbed 1.47 per cent to 10,902.80, beating its previous record high close on July 20.