Dow futures were pointing to an over 1,000 point gain at Tuesday's open after scientists in a U.K.-led clinical trial said that the steroid dexamethasone reduced deaths among patients with severe Covid-19.
The rally in stocks is also building on Wall Street's major reversal Monday after the government on Tuesday morning reported a 17.7% retail sales increase in May, more than double already-lofty expectations and the biggest monthly increase ever. April's massive 16.4% decline was revised to show a drop of 14.7%
A report from Bloomberg that the Trump administration is preparing a $1 trillion infrastructure plan helped support futures overnight.
The Dow Jones Industrial Average on Monday roared back from a 760 point decline to close nearly 160 points higher after the Federal Reserve said it will start buying individual corporate bonds. Fed Chairman Jerome Powell delivers the first part of his semiannual update on monetary policy before a Senate panel at 10 a.m. ET on Tuesday and a House panel at noon ET on Wednesday.
Investors seem to be taking solace in stimulus measures and putting concerns about spiking coronavirus cases in the U.S. and China on the back burner even as total infections globally top 8 million.
Chinese authorities locked down a third neighborhood in Beijing on Tuesday, rushing to prevent the spread of a new Covid-19 outbreak that has infected more than 100 people in a country that appeared to have largely contained the virus.
Nearly two dozen states across America continue to see increases in coronavirus cases as all states move forward with their reopening plans. Texas, for example, saw its sixth new high for Covid-19 hospitalizations in the state in less than a week.
The Food and Drug Administration is warning that anti-malaria drug hydroxychloroquine may weaken the effectiveness of Gilead Sciences' antiviral remdesivir, which was granted emergency use authorization by the FDA to treat hospitalized Covid-19 patients in May. Hydroxychloroquine generated excitement earlier in the year after some small studies suggested it could be beneficial against the coronavirus. President Donald Trump promoted it and took the drug. However, several larger studies later found that hydroxychloroquine was not helpful and caused heart issues in some patients.
U.S. airlines, under tougher enforcement policies, are threatening to ban passengers who refuse to wear masks to reduce the risk of spreading the coronavirus. American Airlines said its updated policy will go into effect on Tuesday, followed by United Airlines on Thursday. Others with stricter mask measures also include Alaska Air, Delta Air Lines, Hawaiian Airlines, JetBlue Airways and Southwest Airlines. Each carrier will decide on the appropriate consequences for noncompliant passengers, up to and including being put on that airline's no-fly list. Exemptions are being made for when people are eating or drinking.
The president plans to sign an executive order on police reform Tuesday as activists ramp up pressure for an overhaul of U.S. policing practices. The executive action comes as lawmakers in both parties work on their own reform proposals, following last month's police killing of George Floyd in Minneapolis and subsequent nationwide protests calling for defunding police. Trump's multipronged directive is aimed at creating federal funding incentives for police departments to improve their practices, senior administration officials said in a call with reporters Monday evening.
— Reuters contributed to this report. Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.