- Equity futures slipped initially in overnight trading after President Donald Trump said he would deploy the military if states didn't act to quell violence from protests.
- Those losses were erased by the market open as traders weighed signals of an economic recovery and the prospect of new German stimulus. Major indexes closed at session highs.
- Oil prices gained as OPEC and its allies are said to favor extending production cuts.
- Read more on Business Insider.
US stocks rose on Tuesday as investors looked past protests and riots taking place all over the country to instead focus on the economy reopening.
Equity futures slipped initially in overnight trading after President Donald Trump said he would deploy the military if states didn't act to quell violence from protests. Those losses were erased by the market open as traders weighed signals of a manufacturing recovery and the prospect of up to $112 billion of additional German stimulus .
Here's where US indexes stood at the 4 p.m. ET market close on Tuesday:
- S&P 500 : 3,080.82, up 0.8%
- Dow Jones industrial average : 25,742.65, up 1.1% (268 points)
- Nasdaq composite : 9,608.38, up 0.6%
Read more: A portfolio manager at a $4.6 billion shop breaks down his Warren Buffett-inspired approach to investing and shares 3 stocks he loaded up on in a 'really attractive' market upended by the coronavirus
Energy stocks led the way higher, with the group finishing 2.7% higher on Tuesday. The market also got a lift from materials and industrial shares, which rose more than 1.2%.
Surging oil prices spurred energy-share gains as OPEC and its allies were said to favor an extension of existing production cuts designed to backstop the commodity, which has seen demand evaporate amid coronavirus.
Still, there are a number of risks that could dash market optimism. Tensions between the US and China have escalated in recent weeks, potentially threatening the phase one trade deal.
And while markets have largely looked past the violent protests stemming from George Floyd's death, some experts argue that they could have a negative impact on stocks and the economic recovery .
Even though there are signs that the coronavirus lockdown-inflicted economic downturn is bottoming out, any recovery is likely to be slow it could take the better part of a decade , the Congressional Budget Office said Monday.
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- Famed economist David Rosenberg says investors are falling into a classic market trap that's historically preceded a further meltdown and warns 'there's not going to be much of a recovery'