Stocks extended their rebound from the lowest levels in over a year as solid outlooks from retailers bolstered confidence in the economy despite supply-chain snags and inflationary pressures.
A drop in US mortgage rates by the most since April 2020 and Broadcom Inc.’s $61 billion acquisition of VMware Inc. also fueled risk appetite. Consumer shares led gains in the S&P 500 as Macy’s Inc. lifted its profit forecast, while deep-discount stores Dollar Tree Inc. and Dollar General Corp. notched their biggest rallies on record amid stronger sales projections. Southwest Airlines Co. and JetBlue Airways Group Inc. surged on bullish revenue estimates. Megacaps Apple Inc. and Tesla Inc. helped push the Nasdaq 100 up almost 3%.