The US markets ended higher on Tuesday as traders shrugged off concerns about the rapid spread of the delta variant of the coronavirus amid continued optimism about the economic outlook. Data from the Centers for Disease Control and Prevention has shown a jump in new coronavirus cases in the US in recent weeks, with the seven-day moving average of new cases reaching 72,790 last Friday, surpassing the peak seen last summer. However, the increase has also seeming led to more Americans getting vaccinated, with the CDC saying 70 percent of US adults have now received at least one dose of a coronavirus vaccine.
Recent data has shown some signs of slowing economic growth, but traders may see that as further proof the Federal Reserve will not begin scaling back stimulus anytime soon. The Federal Reserve has repeatedly pledged to maintain its asset purchases at current levels until substantial further progress has been made toward its maximum employment and price stability goals. Besides, the 10-year Treasury yield stabilized on Tuesday after falling back to near five-month lows on Monday. As yields rebounded from their decline midday back to the unchanged mark, stocks rose.
Dow Jones Industrial Average rose 278.24 points or 0.8 percent to 35,116.4 Nasdaq surged 80.23 points or 0.55 percent to 14,761.29 and S&P 500 was up by 35.99 points or 0.82 percent to 4,423.15.