U.S. stocks were off early highs but remained in bounce mode Tuesday as retail sales for April suggested the economy remained healthy and investors awaited remarks by Fed Chairman Jerome Powell.
How are stocks trading?
The Dow Jones Industrial Average
remained up 185 points, or 0.6%, at 32,409 after rising 450 points at its session high.
The S&P 500
was up 44 points, or 1.1%, at 4,052.
The Nasdaq Composite
jumped 164 points, or 1.4%, to 11,827.
On Monday, the Dow industrials finished less than 0.1% higher, the S&P 500 closed 0.4% lower and the Nasdaq Composite fell 1.2% to 11,662.79. The declines followed another losing week for all three major indexes amid a selloff that’s seen the S&P 500 fall to the brink of a bear market and tech shares crater.
What’s driving the markets?
Investors looked determined to shake off a rough start to the week, with Nasdaq futures surging after a bullish session on Hong Kong’s Hang Seng Index
which closed up 3.2%.
U.S. retail sales painted a picture of a solid economic backdrop, rising 0.9% in April, slightly below the 1% advance forecast by economists surveyed by The Wall Street Journal. Auto dealers led the way but most major retail categories posted gains. The increase in sales in March, meanwhile, was raised to 1.4% from an original 0.7%.
“Retail sales in April show that the consumer is weathering the inflationary headwinds, rising for the fourth consecutive month,” said Jeffrey Roach, chief economist at LPL Financial, in emailed remarks.
“If pricing pressures can moderate enough to relieve some of the pressure on consumers, we expect a rebound in economic growth in Q2. The control group, the category that goes directly into GDP accounting, rose 1% in April,” Roach said.
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