By Thomas Franck, Fred Imbert and Eustance Huang, CNBC–

Stocks ended higher Tuesday as a record jump in retail sales coupled with positive trial results from a potential coronavirus treatment and hopes of more stimulus lifted market sentiment.

The Dow closed up 526 points, or 2%. The S&P 500 gained 1.9%, while the Nasdaq added 1.7%.

The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%. President Donald Trump touted the strong data, adding it “looks like a BIG DAY FOR THE STOCK MARKET, AND JOBS!”

Meanwhile, trial results announced Tuesday showed dexamethasone, a widely available drug, can help critically ill coronavirus patients. The treatment reportedly reduced Covid-19 deaths in hospitalized patients by up to one third.

“A potential Covid steroid treatment in the UK combined with record retail sales and news of additional stimulus has been met with unbridled optimism,” said Mike Loewengart, a managing director at E-Trade. “We’ve been used to seeing record lows in economic fundamentals over the past few months and to see the pendulum swing so far in the other direction is nothing if not encouraging.”

Shares of companies that would benefit from the economy reopening led the gains. United, Delta and American Airlines all rose at least 2.1%. Norwegian Cruise Line, Carnival and Royal Caribbean jumped more than 2.7% each. Kohl’s and Simon Property advanced 9% and 2%, respectively.

Sentiment was also lifted after Bloomberg News reported, citing people familiar with the plan, the Trump administration is drawing up a $1 trillion infrastructure proposal. The report said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband. Caterpillar shares jumped on the report, trading more than 4% higher to lead the Dow.

The Dow closed up 526 points, or 2%. The S&P 500 gained 1.9%, while the Nasdaq added 1.7%.

The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%. President Donald Trump touted the strong data, adding it “looks like a BIG DAY FOR THE STOCK MARKET, AND JOBS!”

Meanwhile, trial results announced Tuesday showed dexamethasone, a widely available drug, can help critically ill coronavirus patients. The treatment reportedly reduced Covid-19 deaths in hospitalized patients by up to one third.

“A potential Covid steroid treatment in the UK combined with record retail sales and news of additional stimulus has been met with unbridled optimism,” said Mike Loewengart, a managing director at E-Trade. “We’ve been used to seeing record lows in economic fundamentals over the past few months and to see the pendulum swing so far in the other direction is nothing if not encouraging.”

Shares of companies that would benefit from the economy reopening led the gains. United, Delta and American Airlines all rose at least 2.1%. Norwegian Cruise Line, Carnival and Royal Caribbean jumped more than 2.7% each. Kohl’s and Simon Property advanced 9% and 2%, respectively.

Sentiment was also lifted after Bloomberg News reported, citing people familiar with the plan, the Trump administration is drawing up a $1 trillion infrastructure proposal. The report said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband. Caterpillar shares jumped on the report, trading more than 4% higher to lead the Dow.