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Upbeat economic data lifts mood
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Walgreen Boots slides after profit warning
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Nasdaq on track for biggest H1 gain since 1983
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Indexes up: Nasdaq 1.76%, S&P 1.22%, Dow 0.74%
(Updated at 1431 EDT/ 1831 GMT)
By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes.
Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market also rose on seasonal factors.
"You'd a bad week in the stock market last week and a bad day on Monday. It's just a bit of recovery," said Williams. "There could be some quarter-end window-dressing too as we get close to the end of the quarter."
The Dow Jones Industrial Average rose 248.96 points, or 0.74%, to 33,963.67, pulling the blue-chip index out of a six-day slump. The tech-heavy Nasdaq Composite was on track to notch its best first-half performance in 40 years with a roughly 29% gain. The Nasdaq added 234.80 points, or 1.76%, at 13,570.58.
The S&P 500 rose 52.89 points, or 1.22%, to 4,381.71 after falling in five of the last six sessions.
Signs of U.S. economic resilience also boosted the Dow Transports index and small-cap Russell 2000 index.
And the PHLX Housing index was up 3% after hitting an all-time high.
Traders are pricing in a roughly 77% chance the Fed will raise interest rates by 25 bps to the 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a day earlier.
More economic data is expected this week, including a key inflation measure, as well as Fed Chair Jerome Powell's speech at the European Central Bank Forum in Sintra, Portugal, which could provide cues on the path of interest rates.
Hawkish comments from Powell last week stalled a U.S. stock rally that had pushed the S&P 500 and Nasdaq to an over one-year high and the Dow to a six-month peak.
Despite recent market weakness, a growth stocks rally, an upbeat earnings season and hopes of the Fed ending its monetary tightening soon have set the main indexes on course for quarterly gains.
Market heavyweights Microsoft Corp and Apple Inc were among the biggest boosts to the S&P 500, followed by Amazon.com Inc, Tesla Inc, Nvidia Corp .
Meta Platforms Inc shares rose 3.8% after Citigroup raised its price target on the stock.
Snowflake climbed 4.6% after the cloud data analytics company announced a partnership with Nvidia to allow customers to build artificial intelligence models using their own data.
Walgreens Boots Alliance dropped 8.9% as the pharmacy chain cut its annual profit forecast on lower demand for COVID-19 tests and vaccines.
Other drugstore chains, including CVS Health Corp and Rite Aid Corp, also fell.
Lordstown Motors Corp slumped 15% as the U.S. electric truck manufacturer filed for bankruptcy protection and put itself up for sale.
Advancing issues outnumbered decliners on the NYSE by a 3.01-to-1 ratio; on Nasdaq, a 1.73-to-1 ratio favored advancers.
The S&P 500 posted 43 new 52-week highs and one new low; the Nasdaq Composite recorded 54 new highs and 137 new lows. (Reporting by Sruthi Shankar, Johann M Cherian in Bengaluru and Terence Gabriel in New York; Editing by Shinjini Ganguli and Richard Chang)
