US stocks extend rally amid investor hopes that central banks are nearly done hiking interest rates

US stocks opened higher Tuesday, building on Monday's strong rally, as investors hope that the end of monetary tightening may be near.

The index opened more than 400 points higher. After the UK government backpedaled on a plan to cut taxes for high-earning people, the US dollar fell further.

A smaller than expected 25 basis point interest rate increase from the Reserve Bank of Australia is fueling market bullishness.

Shortly after the 9:30 a.m., the US index stood here. On Tuesday, it's open.

There are other things happening this morning.

• Ray Dalio reversed course on previous comments that "cash is trash," saying Tuesday that "the short-term interest rate is now about right."
• Markets are mistaken in hoping for a dovish pivot by the Federal Reserve, and easing won't happen unless something in the economy breaks according to Mohamed El-Erian. 
• US Treasury estimates say a price cap on Russian oil could save billions for buyers in emerging markets.