US Stocks Close Higher On Stimulus Optimism

Us equity markets continued their advance on Tuesday, ending solidly higher as investors focused on the boost from stimulus measures and economic reopening more than the mass protests seeping through US cities.

The Dow Jones Industrial Average finished with a gain of 1.1 percent at 25,742.

The S&P 500 rose 0.8 percent to end the day 3,080, while the Nasdaq Composite Index climbed 0.6 percent to 9,608.

New York Mayor Bill de Blasio on Tuesday extended a night-time curfew for the city until June 7 following outbreaks of violence and looting during anti-racism protests gripping America.

Curfews were still in effect in the nation's capital as well, a day after police deployed tear gas and rubber bullets again demonstrators in front of the White House to clear a path for President Donald Trump to walk across a plaza and take a picture holding a bible in front of a historic church.

Once-in-a-generation protests have brought a multiracial and overwhelmingly peaceful coalition into the streets for the past week but each night has descended into mayhem, with both activists and officials blaming rabble-rousers.

While the chaos has dominated the national media, markets have reacted indifferently, focusing instead on a plethora of Federal Reserve ongoing measures that have pumped liquidity into financial markets and allowed stocks to drift higher.

"The market is very focused on what the future holds and at the same time the liquidity that is available to the market is very high because there is no shortage of stimulus," said Nate Thooft, senior managing director at Manulife Investment Management.

"So despite all the negative macro and all the negative economic data, people are of the view that it can only get better from now."

Among individual companies, Dicks Sporting Goods won 3.6 percent despite reporting a US$143.4 million first-quarter loss as the retailer more than doubled its e-commerce sales.

Firearms companies jumped on expectations for higher gun sales. Data has shown strong US demand for the weapons in the wake of the coronavirus crisis. Sturm, Ruger gained 4.4 percent and American Outdoor Brands surged 9.6 percent. (AFP)