According to final results the Dow Jones index gained 1.34% to 32,654.09 points.

The tech-heavy Nasdaq jumped 2.76% to 11,984.52 points.

The S&P 500 rose 2.02% to 4,088.85 points.

The return of risk appetite was "helped by positive news from China" with more favorable statements from the authorities regarding technology groups and their market quotations, noted Wells Fargo analysts.

Favorable data in the euro zone also played a role, with a slight upward revision in economic growth, which stood at +0.3% in the first quarter against +0.2% for the first estimate, these analysts also noted.

Investors also reacted positively to the US retail sales figure which in April rose as expected by 0.9%, suggesting that demand remains robust despite inflation.

But for Gregori Volokhine of Meeschaert Financial Services, "the interpretation of retail sales" which only reflect a part of the more services-oriented American consumption, "was positive because we closed our eyes to inflation".

Instead, the portfolio manager paid attention to comments from executives at Walmart, America's largest retailer, who saw "a bifurcation in its customer base, with low-income earners turning to unbranded staples to make savings".

"We see that low incomes are really starting to suffer from inflation", which does not bode well for consumption, added the specialist who was waiting for several stock market rebound sessions before believing it.

The discount supermarket giant also suffered on Tuesday, with Walmart shares losing 11.38% to 131.35 dollars after a profit reduced by 25% and a lowered forecast for the rest of the year.

Short-term (2-year) bond yields jumped to 2.70% from 2.56% in the wake of further tough statements against inflation from Federal Reserve (Fed) Chairman Jerome Powell.

Those at 10 years also tightened to a lesser extent, again approaching the 3% mark at 2.98%.

The institution will tighten its monetary conditions sharply until there is "clear" evidence that inflation is slowing, Powell said in a conversation with the Wall Street Journal.

If inflation is not decelerating fast enough, "then we will have to consider acting more aggressively," he said.

Another indicator that reassured investors, the pace of industrial production in the United States accelerated in April, in all categories, but in particular with a sharp increase in automobile production for the second month in a row.

The rise in total output was 1.1% from March, according to data released by the Fed on Tuesday.

This was much more than expected, since analysts were expecting a slowdown from the 0.9% rise in March, and were anticipating only +0.5%.

Almost all sectors of the S&P ended higher, notably information technology (+2.91%), materials (+2.86%) and banks (+2.69%).

On the side, Twitter, in loss for several sessions, while the social network is at the center of negotiations with Elon Musk, the boss of Tesla, in the running for its takeover, ended in the green (+ 2.49% to 38 .32 dollars).

The title of the electric car manufacturer gained 5.14% to 761.61 dollars.

The DIY chain Home Depot (+1.68% to 300.95 dollars) announced an increase in its sales forecasts (+3%) for the whole of the year.

Citigroup securities were highly sought after (+7.56% to 51.05 dollars) after billionaire Warren Buffett's Berkshire Hathaway holding took a substantial stake in the bank.

The fund revealed that it had acquired some 55 million shares of Citigroup for a value of nearly $3 billion.

United Airlines soared 7.88% to $46.97.

UAL will be able to fly its 52 Boeing 777s again, after a green light from the air regulatory authorities (FAA).

The company also said it expected a 25% increase in travel demand compared to 2019, before the pandemic.

© 2022 AFP