US stocks climb, Nasdaq hits record as investors pile into tech giants

ICYMI: Lucas Jackson/Reuters US equities climbed on Tuesday as positive data releases fueled new hopes for a swift economic recovery. New home sales leaped 16.6% in May to a seasonally adjusted annualized pace of 676,000, besting economists' estimate of 640,000. IHS Markit's index of US purchasing managers rose to 46.8 in June from 37 the previous month, signaling stabilization throughout the virus-battered economy. Futures for major indexes tumbled on Monday evening after the White House trade adviser Peter Navarro told Fox News the US-China agreement was "over." Navarro later walked back the comments and stocks opened higher. Oil erased early gains, with West Texas Intermediate crude sliding as much as 1.7%, to $39.76. Watch major indexes update live here. US stocks rallied on Tuesday as positive economic data releases fueled fresh investor optimism. New home sales leaped 16.6% in May to a seasonally adjusted annualized pace of 676,000, according to the Census Bureau. Economists surveyed by Bloomberg expected the metric to read 640,000. Record-low interest rates and recovering consumer confidence should keep the optimistic housing-market trend alive for months to come, Ian Shepherdson, chief economist at Pantheon Macroeconomics, said Tuesday. "Looking ahead, the complete recovery - and more - in mortgage applications suggests that both new and existing home sales are set to rise very strongly over the next few months," he said. Here's where US indexes stood after the 4 p.m. ET market close on Tuesday: Read more: Dave Portnoy, the poster child of the day-trading boom, told us why he thinks Warren Buffett is 'past his prime' and was wrong to ditch airline stocks Investors hoping for a smooth economic recovery got a welcome reading from IHS Markit's index of purchasing managers. The metric rose to 46.8 in June from 37 the previous month, the organization reported Tuesday morning. Though the index's highest level since March, it still sits just below the threshold of 50 that indicates whether an economy is growing or shrinking. Investors also got a cheery reading from IHS Markit's index of purchasing managers. The metric rose to 46.8 in June from 37 the previous month, the organization reported Tuesday morning. Though the index sits at its highest level since March, it's still just below the threshold of 50 that indicates whether an economy is growing or shrinking. Surging tech names led indexes higher and pushed the Nasdaq composite to an intraday record. Apple stock hit an all-time high after revealing new software and plans to build its own computer chips at its Worldwide Developer Conference. Microsoft, Alphabet, and Facebook notched healthy gains as well. Bank stocks closely followed the tech rally, with JPMorgan, Bank of America, and Citigroup all climbing. Read more: Morgan Stanley handpicks 10 stocks to buy now for the richest profits as travel and outdoor activities transform in the post-pandemic world Wirecard shares spiked as much as 45% following reports that former CEO Markus Braun was arrested on suspicion of false accounting. The German fintech company slid 56% at intraday lows on Monday after saying that $2 billion worth of missing cash likely didn't exist. Futures contracts for major indexes initially on Monday evening after the White House trade adviser Peter Navarro told Fox News the US's trade agreement with China was "over." He cited "the lack of trust we now have in the Chinese Communist Party" and blamed the country for the coronavirus pandemic. Dow futures tanked roughly 400 points following Navarro's interview. The trade adviser quickly walked back his comments, saying they were taken "wildly out of context" and "had nothing at all to do with the phase-one trade deal." President Donald Trump said in a tweet late Monday that the agreement was "fully intact." The comments helped erase futures-market losses, and the gains carried over into regular trading. Oil erased gains after rising about 2% in early trading. West Texas Intermediate crude slid as much as 1.7%, to $39.76. Brent crude, the international benchmark, fell 2%, to $42.21, at intraday lows. Read more: Dennis Lynch and Kristian Heugh run the best large-company stock funds of the last 10 years. The legendary investors break down the 5 principles that guide their quest for long-term growth. Tuesday's upswing followed a less impactful session to start the week. The Dow rose 154 points on Monday as investors turned their focus to economic-reopening progress from risks of another surge in COVID-19 infections. The popular stay-at-home plays Netflix, Zoom, and Peloton all hit record highs in the prior session as investors viewed rising coronavirus case counts as a harbinger of longer lockdowns. Gold reached its highest level in nearly eight years. Now read more markets coverage from Markets Insider and Business Insider: Global economy to shrink 'disastrous' 4.7% in 2020 amid post-pandemic scarring, Bloomberg economists forecast The Fed's unprecedented relief measures could form the greatest financial bubble in history, Ed Yardeni says A 30-year market veteran explains why we're in 'one of the nutsiest bubbles in the history of bubbledom' - and warns of an 'underwater' economy for the next several years To keep reading about US stocks climb, Nasdaq hits record as investors pile into tech giants, Click on the link. Seoul, Korea
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