By Liz Moyer
Investing.com -- U.S. stocks gained upward traction on Tuesday despite sober words from the Federal Reserve about the pace of recovery from Covid-19 shutdowns.
Investors reacted to a big jump in retail sales in May and word that a potential coronavirus treatment showed promise, pushing the Dow Jones Industrial Average more than 500 points higher.
Oil prices also jumped as traders anticipated data that could show whether demand for fuel is increasing, a sign that businesses are coming back to life.
Here are three things that could affect markets tomorrow.
1. Data on Oil Inventories Could Show Uptick in Demand
Energy Information Administration publishes its weekly crude oil inventories data on Wednesday at 10:30 AM ET (14:30 GMT). Crude inventories are seen falling 152,000 barrels after a build of 5.7 million barrels in the previous week, according to analysts followed by Investing.com. Gasoline inventories are also seen falling 17,000 barrels after a build of 866 million barrels in the previous week.
2. Jerome Powell's Testimony Continues
Federal Reserve Chairman Jerome Powell continues his Congressional testimony on Wednesday. He already told lawmakers on Tuesday that the U.S. economy is unlikely to achieve full recovery until Americans are certain that the coronavirus pandemic has been contained.
"Moreover, the longer the downturn lasts, the greater the potential for longer-term damage from permanent job loss and business closures,” Powell said in testimony before a Senate banking committee.
3. Housing Starts a Barometer of Economic Revival
Census Bureau data on housing starts will be released Wednesday at 8:30 AM ET (12:30 GMT). Analysts tracked by Investing.com expect a number of 1.095 million for the month of May, up from 890,000 for April.
Housing starts are a leading indicator of strength in the housing market as construction projects resumed after Covid-19 lockdowns.