Wall Street gained on Monday, with the Dow Jones having its best day in a month, led by bank, industrial and energy shares, with strong economic data appearing to offset worries about rising trade tensions.
The Dow Jones Industrial Average surged 315 points, or 1.29%, to 24,771, the S&P 500 gained 21 points, or 0.76%, to 2,781 and the Nasdaq Composite added 50 points, or 0.66%, to 7,739.
Financial stocks were the biggest gainers, with JP Morgan, Wells Fargo and Citigroup scheduled to report results on Friday, kicking off the second-quarter earnings season in earnest.
JP Morgan rose 3.1% while Bank of America jumped 3.6%. Citigroup was up 2.7% and Goldman Sachs Group Inc. rose 2.8%.
Economic data from the Federal Reserve showed that consumer borrowing picked up in May, registering its fastest pace of growth since November. On Friday, June data on nonfarm payrolls came in stronger than expected, and May and April jobs figures were revised higher. The report was seen as underlining the strength in the US economy.
Investors played down the escalating trade tensions, although the US and China slapped tit-for-tat tariffs on $34 billion of each other’s goods on Friday.
In another development, a Bank of America Merrill Lynch Global Research report showed earnings per share for S&P 500 companies for 2018 was revised higher amid better-than-expected first-quarter results, higher oil prices and stronger-than-expected US economic growth.
Caterpillar gained 3.8%, providing the biggest boost to the Dow. The S&P industrial sector jumped 1.7%.
Twitter plunged 5.4% amid reports that the social media company suspended more than 70 million fake accounts in May and June, which analysts said could be negative for user growth.
Groupon shares climbed 11% following a media report that it may be looking for a buyer, with China’s Alibaba Group a potential suitor.
In Asia, share markets gained on Tuesday in morning session, taking cues from the rally in US stocks as investors temporarily set aside recent trade-related concerns.
In Japan, the Nikkei 225 advanced 1.02%. South Korea's Kospi rose 0.63%. Down Under, the S&P/ASX 200 gave up early gains to shed 0.19%.
In China, the Shanghai Composite Index added 0.05%, while Hong Kong’s Hang Seng Index rose 0.66%.