U.S. stocks moved higher on Tuesday and the S&P 500 set a new record high as broad market strength outweighed the travel names held back by COVID fears.
The Dow Jones Industrials screamed higher 278.24 points to 35,116.40, after briefly falling more than 100 points earlier in the session.
The Dow was bolstered by stocks tied to the economic recovery, including banks and industrial companies like Caterpillar and 3M. Health care stocks such as Amgen and Johnson & Johnson outperformed as well. In the technology sector, Apple hiked 1.3%, and IBM rose 1.3% and 1.9%.
The S&P 500 gained 35.99 points to 4,423.15, a new all-time closing high.
The NASDAQ rebounded 80.23 points to 14,761.29.
One notable outperformer on Monday was retail brokerage Robinhood, whose stock jumped more than 20% and pushed well above its first price from its initial public offering last week.
Meanwhile, the second-quarter earnings season continues with Under Armour shares rising 7.5% after the company beat estimates on the top and bottom lines. However, Clorox’s stock fell more than 9% after a disappointing report.
Shares of Simon Property jumped more than 2% after the mall owner said sales bounced back to pre-pandemic levels, up 80% from a year ago. It also reported a relatively high occupancy rate.
Through Friday, 88% of S&P 500 companies had reported a positive earnings surprise for the second quarter, which will mark the highest percentage since FactSet began tracking this metric in 2008.
The spread of the delta coronavirus variant continued to keep investors on edge. The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized COVID-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.
Investors are closely monitoring progress in Washington as lawmakers move toward a bipartisan infrastructure bill that would devote $550 billion to U.S. infrastructure. Senate Majority Leader Chuck Schumer aims to rush the 2,702-page legislation through the chamber before a planned monthlong recess starting Aug. 9.
Prices for 10-Year Treasurys trailed off a bit, raising yields back to Monday’s 1.18%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 64 cents to $70.62 U.S. a barrel.
Gold prices docked $8.60 to $1,813.60 U.S. an ounce.