4:10 p.m. ET: North American equity markets finish solidly higher

North American equity markets closed out Tuesday’s trading session firmly in positive territory, with the S&P/TSX Composite Index up 1.02 per cent, the S&P 500 1.90 per cent higher, the Dow Jones Industrial Average gaining 2.04 per cent and the Nasdaq Composite up 1.75 per cent.

Equity markets initially started the day in negative territory on concerns over another potential flare-up of the COVID-19 virus, but stocks pushed into positive territory through the afternoon as focus shifted to record-shattering U.S. retail sales data and the potential for a US$1-trillion infrastructure stimulus package.

In Toronto, 10 of the 11 TSX subgroups finished the day higher, with health care, energy and financials posting the largest percentage gains. Only the materials subgroup closed the session in negative territory.

Crude prices gained, with U.S. benchmark West Texas Intermediate up 2.94 per cent to US$38.21 per barrel. Alberta’s Western Canadian Select rose 1.54 per cent to US$29.75 per barrel.

The Canadian dollar was essentially unchanged against its U.S. counterpart, up less than a tenth of a cent to 73.73 cent U.S.

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1:00 p.m. ET: North American markets pare gains as virus fears flare

North American equity markets pared some of their earlier gains but remained solidly in positive territory despite continued concerns about another flare-up of the COVID-19 virus. Markets had initially started the day sharply higher following record-breaking U.S. retail sales and optimism surrounding economic reopenings.

The S&P/TSX Composite Index rose 1.2 per cent, the S&P 500 and Nasdaq Composite Index were up two per cent and the Dow Jones Industrial Average was two-and-a-half per cent higher.

There are concerns over case counts and hospitalizations in a number of American states, including Texas and Florida, and Beijing is closing down schools in a bid to stem another outbreak of the virus.

In Toronto, nine of the 11 TSX subgroups were in positive territory, with health care, energy and industrials posting the largest percentage gains. Only materials and information technology were in negative territory.

181 of the 229 constituents on the index were higher, with Fairfax Financial Holdings Ltd. among the notable gainers. Fairfax shares were up seven-and-a-half per cent through midday after chair Prem Watsa announced he increased his stake in the firm by $149-million.

Oil prices gave up some earlier gains, with U.S. benchmark West Texas Intermediate up 1.8 per cent to US$37.80 per barrel. Alberta’s Western Canadian Select slipped a little less than one per cent to US$29.05 per barrel.

The Canadian dollar was little changed against its American counterpart, up a tenth of a cent to 73.75 cents U.S.

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9:40 a.m. ET: North American equity markets surge, extend Monday’s gains

North American equity markets surged out of the gate early Tuesday following early reports of a massive U.S. infrastructure spending plan aimed at spurring the world's biggest economy back to life. 

The S&P/TSX Composite Index was up 2.1 per cent, the S&P 500 rose 2.76 per cent, the Down Jones Industrial Average gained 3.25 per cent and the Nasdaq Composite Index increased 2.34 per cent. 

Tuesday’s rally came after Bloomberg News reported the Trump administration was considering a massive US$1 trillion infrastructure stimulus package, which would includes funds earmarked for roads, bridges, and next-generation wireless networks. The U.S. also posted a record surge in retail sales in May, rising 17.7 per cent from the prior month, as American consumers got back to shopping as COVID-19 lockdowns eased.

Tuesday's early gains extend the late Monday rally, where major markets on both sides of the border broke into positive territory after the U.S. Federal Reserve said it was moving forward with its broad-ranging corporate bond-buying program.

Crude oil prices also rose, with U.S. benchmark West Texas Intermediate up 3.5 per cent to US$38.42 per barrel and Alberta’s Western Canadian Select rising 6.08 per cent to US$31.08 per barrel. Oil prices were up following optimism of further U.S. stimulus along with an International Energy Agency report that estimated crude demand will rise next year, though it likely won’t return to pre-pandemic levels until at least 2022.

In Toronto, all 11 of the TSX subgroups were in positive territory, led by the energy subgroup, which rose about three-and-a-half per cent.

Fairfax Financial Holdings Ltd. was a notable mover, up nearly 10 per cent, after the company’s chair Prem Watsa disclosed he had increased his stake in the firm by $149 million, calling shares “ridiculously cheap”

The Canadian dollar gained two-tenths of a cent against its American counterpart to rise to 73.90 cents U.S.