The US markets ended higher on Tuesday with Nasdaq reaching a new record closing high as Bitcoin staged an intraday comeback. Bitcoin turned higher over the course of the trading day after the cryptocurrency tumbled below $30,000 earlier in the day. The strength that emerged on markets as Federal Reserve Chair Jerome Powell continued to downplay the risks of inflation during testimony before the House Select Subcommittee on the Coronavirus Crisis. Powell acknowledged inflation has increased notably in recent months but reiterated the view that the jump is due to transitory factors and predicted inflation would drop back toward the Fed's longer-run goal of 2 percent price growth. The Fed chief noted the economy has shown sustained improvement since he last appeared before the committee, citing widespread Covid-19 vaccinations as well as unprecedented monetary and fiscal policy actions.
On the US economic front, the National Association of Realtors (NAR) released a report showing existing home sales extended a recent pullback in May but fell by less than Street had expected. NAR said existing home sales slid by 0.9 percent to an annual rate of 5.80 million in May after tumbling by 2.7 percent to a rate of 5.85 million in April. Street had expected existing home sales to slump by 2.2 percent to a rate of 5.72 million. Existing home sales have plummeted by 12.9 percent since January but are still up by 44.6 percent compared to May of 2020.
Dow Jones Industrial Average rose 68.61 points or 0.2 percent to 33,945.58, Nasdaq surged 111.79 points or 0.79 percent to 14,253.27 and S&P 500 was up by 21.65 points or 0.51 percent to 4,246.44.