Stocks turned higher in morning trading on Wall Street
Tuesday as investors watch an encouraging report on retail sales and a mixed
round of earnings reports from several big retailers.

The S&P 500 gained 1.2% to 4,049.36 as of 10:27 a.m.
Eastern time zone. The Dow Jones Industrial Average surged 237 points or 0.7%
to 32,460. The Nasdaq rose 1.6% to 11,821.73.

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The highly volatile technology stocks led the gains.
Apple grew 1.5% and Microsoft rose 1.2%.

Retailers, health care companies and industrial firms
also witnessed gains. Amazon rose 1.2%. Abbott Laboratories jumped 4.2% after
the company signed a deal with regulators to ramp up production of baby formula
amid a shortage.

Banks gained ground along with rising bond yields, which
they depend on to charge more lucrative interest on loans. The yield on the
10-year Treasury rose 2.95% from 2.88% late Monday. JPMorgan Chase rose 3.2%.

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The strong gains on Tuesday come as the broader market
fights a six-week long slump.

The Commerce Department said US retail sales rose 0.9% in
April. The solid increase came on the back of higher sales of cars,
electronics, and at more spending at restaurants. The positive report helps
ease some concerns on Wall Street about persistently high inflation affecting
consumer spending.

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Inflation is at its highest level in four-decades, driven
by demand for goods outpacing supplies in the aftermath of the pandemic. Supply
chain issues have prompted businesses to increase prices on everything from
food to clothing. Rising energy prices following Russia’s invasion of Ukraine worsened
inflationary pressure, as did China’s strict lockdown measures over the last
month as it faces a resurgence of COVID-19 cases in major cities.

Retail giant Walmart, fell 8.7% after reporting
disappointing earnings and cutting profit forecast for the year, partly because
of inflation pressures.

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Central banks have been changing policies to help fight
inflation, The Federal Reserve is gradually pushing its benchmark short-term
interest rates off its record low near zero, where it spent most of the
pandemic. Investors are concerned that the central bank could lead to a
recession if it raises rates too high or too quickly and are watching for
comments by Fed officials that might provide insight into the US economic
outlook and future policy moves.