U.S. Stocks Surge Amid Weak Consumer Confidence and China's Stimulus

U.S. stocks closed higher on Tuesday despite weak consumer confidence data, driven by surges in mining stocks following China's announcement of a major stimulus package. Visa shares dropped due to antitrust allegations, and inflation concerns were highlighted by the Federal Reserve.

U.S. stocks ended Tuesday on a high note, overcoming weak consumer confidence data as mining stocks surged after China's comprehensive stimulus announcement.

Despite initial setbacks from a report by the Conference Board showing a dip in U.S. consumer confidence due to labor market worries, the market rebounded. Zachary Hill from Horizon Investments pointed out that China's policy measures for its equity market and future interest rate cuts catalyzed a sharp rise in international stocks.

This increase influenced sectors in the U.S. market sensitive to China, notably the metals and mining materials sector. Preliminary data showed the S&P 500 rose 15.89 points (0.28%) to 5,734.46, the Nasdaq Composite increased by 100.25 points (0.56%) to 18,074.52, and the Dow Jones climbed 103.11 points (0.23%) to 42,227.76. Metal prices also soared on China's stimulus, boosting U.S.-listed Chinese firms like Alibaba. On the downside, Visa shares plummeted following U.S. Department of Justice's antitrust lawsuit. Federal Reserve Governor Michelle Bowman also highlighted persistent high inflation concerns, suggesting caution in the Fed's rate-cutting plans. Upcoming jobless claims and personal consumption data are closely watched.

(With inputs from agencies.)