Stocks on Wall Street surged on Tuesday, following global markets higher, after a surprisingly strong rise in retail sales fueled bets that the worst of the economic damage from the coronavirus pandemic could be over.
The recent swings have come as investors’ hopes for a return to normal in the economy have competed with warnings that the recovery won’t come as quickly as markets expect. Also worrying investors lately is the sudden uptick in new coronavirus cases as restrictions on movement and commerce have eased.
But on Tuesday, the good news clearly won out. Stocks were already poised to climb, extending a late rally from the day before, but data showing that retail sales jumped 18 percent in May, a stronger than expected rebound, spurred the market higher.
Also adding to the focus on recovery, scientists at the University of Oxford said on Tuesday that a 6,000-patient trial in Britain showed that a low-cost steroid, dexamethasone, could reduce deaths significantly for hospitalized Covid-19 patients.
Traders were also reacting to a Bloomberg News report that the Trump administration was considering $1 trillion in infrastructure spending to help the economy rebound.
Markets had been cheered on Monday after the Federal Reserve announced that it would start to buy debt issued by individual companies. The S&P 500, which had been in negative territory, ended up about 1 percent as a result. The Fed’s plan is meant to ensure businesses have access to funding during the economic downturn.
Source
NY Times
