MARKET PULSE
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US stocks ended markedly higher on Tuesday, and Dow industrials posted a third consecutive gain, fueled by a rally in energy and materials stocks, a day after technology stocks underwent a surprising reversal. . Comments made by members of the Federal Reserve implying increased support for the economy and pointing to the possibility of a decrease in the unemployment rate also helped lift the market, a day after the Nasdaq made a powerful change. The Dow Jones Industrial Average (DJIA) closed close to 557 points, or 2.1%, at 26,643, the S&P 500 (SPX) closed the session 1.3% at 3,198, while the Nasdaq Composite Index (COMP) ended the day. 0.9% to about 10,489. The shares boosted gains in stocks on Tuesday afternoon after Fed Governor Lael Brainard said the US central bank should use large-scale asset purchases for a “sustained” period to help the economy recover amid a “thick fog of uncertainty” caused by COVID- 19) Later on Tuesday, St. Louis Fed President James Bullard gave an optimistic tone on the outlook, Saying that the unemployment rate could drop dramatically in the next six months, if “we play our cards right” and many workers subject to temporary layoffs are removed from the market. On Monday, the Nasdaq led the market action, trading at an intraday record early in the prior year before turning south in afternoon activity to end the day with a drop of 226.60 points, or 2.1%, to 10,390.84.
Video: The US Consumer Price Index rose 0.6% in June, versus the expected 0.5% rise (CNBC)
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