04:29 PM EDT, 07/16/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 closed at all-time highs Tuesday as markets assessed official retail sales data for June and the latest corporate earnings.

The Dow jumped 1.9% to 40,954.5, while the S&P 500 rose 0.6% to 5,667.2. The Nasdaq Composite added 0.2% to 18,509.3. Industrials led the gainers among sectors, while communication services and technology closed lower.

In economic news, US retail sales were flat last month following an upwardly revised 0.3% rise in May. Analysts were modeling a 0.3% decrease, according to a consensus survey by Bloomberg.

"The June retail sales report shows a generally resilient US consumer that took advantage of the drop in gasoline prices to increase spending in other areas," BMO said in a note to clients. "Some (Federal Open Market Committee) hawks will remain leery of the consumers' resilience as they eye the potential for a July rate cut, thereby making September a safer bet as they await further data to gain confidence that inflation is sustainably moving toward the (committee's) target."

On Monday, Federal Reserve Chair Jerome Powell reportedly said policymakers won't wait for inflation to fall to 2% before reducing interest rates.

The US 10-year yield fell 6.5 basis points to 4.16% Tuesday, while the two-year rate dropped 2.7 basis points to 4.42%.

US homebuilder confidence unexpectedly fell this month as elevated mortgage and construction loan rates weighed on sentiment, though expectations at the six-month horizon rose, according to National Association of Home Builders and Wells Fargo data.

West Texas Intermediate crude oil dropped 1.3% to $80.88 a barrel.

In company news, UnitedHealth Group ( UNH ) logged stronger-than-expected Q2 results, while lowering full-year GAAP earnings guidance amid increased costs and revenue disruptions tied to a cyberattack in February. The health insurer's shares rose 6.5%, the best performer on the Dow.

Morgan Stanley ( MS ) and Bank of America ( BAC ) posted better-than-projected Q2 results. Their shares advanced 0.9% and 5.4%, respectively.

Grail (GRAL) was the top gainer on the Nasdaq, up nearly 25%. The company said Monday it completed the enrollment of more than 35,000 people for its US study of Galleri, its potential multi-cancer early detection test, at more than 30 health care facilities.

Charles Schwab ( SCHW ) saw the steepest decline on the S&P 500, down 10%, after the financial services company's Q2 sales rose less than expected as net interest revenue -- which is its biggest top-line contributor -- declined year over year.

Gold increased 1.8% to $2,473.10 per troy ounce, while silver gained 2% to $31.55 per ounce.