Finance

Stocks gain after record jump in retail sales

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Stocks posted major gains on Tuesday after data showed retail sales jumped by a record last month.

The Dow Jones Industrial Average closed up 527 points, or 2 percent, after having opened up over 800 points. The S&P 500 closed up 58 points, or 1.9 percent, after opening up 83 points.

The gains came after data before the markets opened showed retail sales increased by a record 17.7 percent in May, a rebound from the record drop of 14.7 percent in April, raising hopes the economy could start rebounding from the impact of the coronavirus pandemic.

Markets were also buoyed by a clinical trial in the United Kingdom that found that dexamethasone, an inexpensive and common drug, could reduce deaths from COVID-19 in extremely ill patients.

But Federal Reserve Chairman Jerome Powell’s testimony to lawmakers that the path of an economic recovery remains uncertain dampened sentiment somewhat, as did a new high in COVID-19 cases and hospitalizations in Texas.

Markets seemed to be pulling back from major losses last week after some states reported rising coronavirus cases as they start reopening their economies.

Tags Dow Jones Jerome Powell S&P

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