Stocks rose on Tuesday as a record jump in retail sales — coupled with positive trial results from a potential coronavirus treatment and hopes of more stimulus — sent market sentiment soaring.
The Dow Jones Industrials leaped 526.82 points, or 2%, to 26,289.98.
The S&P 500 soared 58.15 points, or 1.9%, to 3,124.74.
The NASDAQ leaped 169.84 points, or 1.8%, to 9,895.87. It was the third straight gain for the major averages.
The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%.
Meanwhile, multiple reports said dexamethasone — a widely available drug — can help critically-ill cornavirus patients. The treatment reportedly reduced COVID-19 deaths in hospitalized patients by up to one third.
Shares of companies that would benefit from the economy reopening led the gains. United, Delta and American Airlines all rose at least 2%. Norwegian Cruise Line, Carnival and Royal Caribbean jumped more than 2.7% each. Kohl's gained 9% and Simon Property advanced 1.5%.
Sentiment was also lifted after reports the Trump administration is drawing up a $1-trillion infrastructure proposal.
The reports said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.
Prices for the 10-Year Treasury dropped, boosting yields to 0.75% from Monday's 0.71%. Treasury prices and yields move in opposite directions.
Oil prices gained 97 cents to $38.09 U.S. a barrel.
Gold prices advanced $7.70 to $1,734.90 U.S. an ounce.
Retail Sales Pump Dow Up 500+