On Tuesday, U.S. stocks went up as Citigroup saw a surge in bank shares after Berkshire Hathaway disclosed a big stake and solid retail sales in April, which eased concerns about slowing economic growth.
Nine of the 11 major S&P sectors advanced in morning trade with financials up 2.3% and technology 1.8%.
Microsoft Corp, Apple Inc., Tesla Inc. and Nvidia Corp gained between 1.4% and 4%, giving the biggest boost to the S&P 500 and the Nasdaq.
The bank's share price went up by 3.5% with Citigroup gaining 7% after Warren Buffett's Berkshire Hathaway disclosed a nearly $3 billion investment in the U.S. lender.
In April, U.S. retail sales increased as consumers bought motor vehicles, as well as an improvement in supply and frequent restaurants, giving a boost to the economy at the beginning of the second quarter.
Greg Bassuk, chief executive at AXS Investments, said retail sales are one of the core data points that the Fed will look at as it thinks about how aggressive it needs to be to control inflation.
It should allay some of the recession concerns, on the basis that it is a positive signal on the trajectory and potential health of the U.S. economy further into 2022. Fed Chair Jerome Powell is scheduled to speak later in the day, and his comments would be parsed for clues on the path of future interest rate hikes. There is a nearly 80% chance of a 50 basis point rate hike in June, according to traders.
The Dow Jones Industrial Average was up 292.68 points, or 0.91%, at 32,516, according to the Dow Jones Industrial Average. The S&P 500 was up 49.19 points, or 1.23%, at 4,057 at the end of the day. The Nasdaq Composite was up 186.51 points, or 1.60%, on the 20th of May, and the Nasdaq Composite was up 186.51 points, or 1.60%, at 11,849. There was a bigger hit to margins after Walmart Inc, which fell 8.6%, after the retail giant cut its annual profit forecast.
The shares of rival retailers Costco, Target, Dollar Tree and Target fell between 0.6% and 2.2%.
Home Depot Inc. HD.N went up 1.9% after raising its full-year sales forecast on firm demand for home improvement tools and building materials.
United Airlines Holdings Inc increased 6.1% after the carrier lifted its current-quarter revenue forecast, boosting the shares of Delta Air, American Airlines and Spirit Airlines.
A positive first quarter earnings season has been overshadowed by concerns about the Ukraine war, soaring inflation, COVID 19 lockdown in China and aggressive policy tightening by central banks.
In May, the S&P 500 is down nearly 2% and the Nasdaq 3.9%, as a result of declines in growth stocks.
U.S. listed Chinese stocks jumped in hopes that China will ease its crackdown on the technology sector and COVID 19 pandemic.
Advancing issues outnumbered decliners by a 4.05 to 1 ratio on the NYSE and a 3.95 to 1 ratio on the Nasdaq.
The S&P index recorded a new 52 week high and 29 new lows, while the Nasdaq recorded 18 new highs and 100 new lows.