U.S. markets and stock ETFs gained momentum Tuesday on improving signs in the economy and hopes of more stimulus helped offset ongoing concerns about a resurgence in the coronavirus.

On Tuesday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 1.7%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) gained 1.0%, and SPDR S&P 500 ETF (NYSEArca: SPY) rose 1.2%.

While the economy has been hard hit by the COVID-19 pandemic, businesses are reopening and investors are hopeful that the economy can pick up where it left out.

“We’re watching the recovery and the process of the U.S. states reopening the economy very closely,” Katerina Simonetti, senior portfolio manager at UBS Private Wealth Management, told the Wall Street Journal. “It’s trial and error: They’re trying different things, seeing if they work or not. Assuming that it would work, we expect a sustained economic recovery for the third or perhaps the fourth quarter of this year.”

Supporting the positive outlook, preliminary results from IHS Markit data revealed business activity in the U.S. private sector strengthened for a second consecutive month over June, but it still remained weakened since the lockdowns. Furthermore, sales of new homes surged 16.6% in May, compared to expectations for a 2.9% rise, Reuters reports.

Georgina Taylor, a multiasset fund manager at Invesco, argued that the home sales data is an indication of consumer confidence.

“It’s one thing to turn a factory back on but does everyone feel comfortable going out and spending money? Consumer confidence plays a part in that,” Taylor told the WSJ.

White House advisor Larry Kudlow also stated that tax rebates and direct mail checks are being discussed for the next coronavirus relief bill.

“The market seems to be in a liquidity-driven FOMO (fear of missing out) mode where Fed has your back and U.S. government will probably come back to the table in the next two to three weeks to continue to do more stimulus,” Nate Fischer, chief investment strategist at Strategic Wealth Partners, told Reuters. “It would be healthy for the market to probably chop sideways here in the next couple weeks and then in earning season see if companies really feel as bullish as the markets.”

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