Markets

Here's what happened to the stock market on Tuesday

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Unprecedented Fed policies drive James Bianco out of the bear camp

Dow Jones Industrial Average rises 526 points

The Dow jumped 526.82 points, or 2%, to close at 26,289.98. The S&P 500 climbed 1.9% to 3,124.74. The Nasdaq Composite advanced 1.8% to 9,895.87. Record-setting U.S. data, positive coronavirus trial results and the potential for more fiscal stimulus sparked a rally on Wall Street.

Retail sales surge

The U.S. government reported a 17.7% jump in retail sales for May, a record. The print easily beat a Dow Jones estimate of a 7.7% gain. Tuesday's data comes as states continue to reopen following the coronavirus-induced shutdown. Meanwhile, trial results announced Tuesday showed dexamethasone — a widely available drug — can help critically ill coronavirus patients. Sentiment was also lifted after Bloomberg News reported, citing people familiar with the plan, the Trump administration is drawing up a $1 trillion infrastructure proposal.

Caterpillar leads Dow, Apple jumps

Caterpillar was the best-performing Dow stock, jumping 5.3%. Apple, meanwhile climbed 2.7% after a Citi analyst hiked his price target on the tech giant to a Street high of $400 per share.

What happens next?

Mortgage applications and housing starts data are set for release Wednesday.

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