On Tuesday, U.S. stocks advanced further, as investors were encouraged by upbeat retail sales readings and a news report of a potential one-trillion-dollar infrastructure plan by the government. Meanwhile, Federal Reserve Chairman Jerome Powell told the Senate Banking Committee: "Until the public is confident that the disease is contained, a full recovery is unlikely."
The Dow Jones Industrial Average jumped 526 points (+2.0%) to 26290, the S&P 500 increased 58 points (+1.9%) to 3124, and the Nasdaq 100 was up 172 points (+1.8%) to 9949.
Dow Jones Industrial Average: Daily Chart
Source: GAIN Capital, TradingView
Pharmaceuticals, Biotechnology & Life Sciences (+3.02%), Energy (+2.82%) and Technology Hardware & Equipment (+2.63%) sectors were market leaders. Eli Lilly (LLY +15.68%), Nordstrom Inc (JWN +12.91%), Kohls Corp (KSS +8.96%), Vulcan Materials (VMC +8.76%) and Gap (GPS +8.48%) were top gainers.
On the technical side, about 41.3% (39.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 53.8% (46.2% in the prior session) were trading above their 20-day moving average.
U.S. official data showed that Retail Sales surged 17.7% on month in May (+8.4% expected), the biggest increase on record. Industrial Production rose 1.4% on month in May (+3.0% expected).
Due later today will be Housing Starts for May (an increase to an annualized rate of 1.100 million units expected).
European stocks recorded beefy gains, with the Stoxx Europe 600 Index advancing 2.9%. Germany's DAX surged 3.4%, France's CAC rose 2.8%, and the U.K.'s FTSE 100 jumped 2.9%.
U.S. government bond prices remained under pressure, as the benchmark 10-year U.S. Treasury yield settled higher at 0.754%.
Spot gold was little changed at $1,725 an ounce.
Oil prices rose for a second session, as economic recovery expectations were boosted by better-than-expected U.S. retail sales data. U.S. WTI crude oil futures (July) climbed 3.4% to $38.38 a barrel.
On the forex front, the ICE U.S. Dollar Index rose 0.5% on day to 97.03, lifted by a record gain in U.S. retail sales.
EUR/USD slid 0.6% to 1.1260. German ZEW Current Situation Index improved to -83.1 in June (-82.0 expected) from -93.5 in May and Expectations Index climbed to 63.4 (60.0 expected) from 51.0.
GBP/USD fell 0.3% to 1.2571. Official data showed that U.K. jobless rate was steady at 3.9% in the three months to April (4.7% expected). On the other hand, CPI data for May will be released later today (+0.5% on year expected).
USD/JPY was broadly flat at 107.38. The Bank of Japan kept its benchmark rate unchanged at -0.10% as expected, while expanding its special lending program to 110 trillion yen from 75 trillion yen. This morning, government data showed that Japan's exports decline 28.3% on year in May (-26.1% expected) and imports sank 26.2% (-20.4% expected),
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.