The S&P/ASX200 advanced 35 points, or 0.40 per cent, to 8,845.9 as the broader All Ordinaries lifted 35.7 points, or 0.39 per cent, to 9,137.8.
"The rally in the ASX200 today came as the bullish fever witnessed on Wall Street in recent weeks finally gripped the local bourse, which has spent most of this month stubbornly pinned about one per cent either side of the 8800 handle," IG Markets analyst Tony Sycamore said.
"The strong performance was led by the ASX200 financial sector and its big banks which returned to favour."
All big four banks traded higher, led by a one per cent boost to NAB shares, while CBA pushed 0.8 per cent higher to $166.87.
Eight of the 11 local sectors finished in the green, as real estate, consumer staples and IT stocks fell behind.
The materials sector rose to a 12-month high during the session, as large cap miners BHP (+0.5 per cent) and Rio Tinto (+1.2 per cent) edged higher while Fortescue slipped 1.1 per cent after publishing its climate transition plan.Â
Gold continued its record-breaking run, hitting a fresh peak of $US3,759 ($A5,700) an ounce on Tuesday morning, supporting ASX-listed producers like Northern Star (+3.2 per cent), Westgold Resources (+3.8 per cent) and Newmont (+1.4 per cent).
Uranium plays continued to show strength, Paladin Energy gaining 2.4 per cent to $8.68 while enrichment technology company Silex Systems has rocketed more than 40 per cent since the same time last week to $6.03.
The sector has been boosted by news commodity trading giant Mercuria will expand into physical uranium, nuclear reactor restarts elsewhere and supply cuts from the world's largest uranium producer Kazatomprom.
Real estate underperformed the broader market as Goodman Group and Stockland gave up more than 0.6 per cent each.
Consumer staples slipped 0.3 per cent as Coles and Woolworths faded 0.5 per cent each, while the discretionary side of retail edged higher.
Health care stocks continued to find support to post a third session of gains as Telix Pharmaceuticals rallied more than nine per cent, beating out the top-200 after its prostate cancer imaging agent was approved for a US health care reimbursement scheme.
At the other end of the table was gold producer Vault Minerals, which slipped 4.4 per cent after cutting its 2026 financial year production guidance.
The Australian dollar is buying 65.93 US cents, down slightly from 65.95 US cents on Monday at 5pm.
On Wednesday, the Australian Bureau of Statistics will release its monthly inflation indicator, with consensus estimates tipping an uptick to 2.9 per cent in the year to August from July's 2.8 per cent figure.
ON THE ASX:
* The S&P/ASX200 rose 35 points on Tuesday, or 0.40 per cent, to 8,845.9
* The broader All Ordinaries gained 35.7 points, or 0.39 per cent, to 9,137.8
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.93 US cents, from 65.95 US cents on Monday
* 97.38 Japanese yen, from 97.55 Japanese yen
* 55.89 euro cents, from 56.09 euro cents
* 48.77 British pence, from 48.89 British pence
* 112.57 NZ cents, from 112.57 NZ cents
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