By Anora Mahmudova and Victor Reklaitis, MarketWatch

New home sales surge in April

The Dow Jones Industrial Average jumped by nearly 200 points as a rally in financial and technology shares underpinned a sharp, broad-based stock-market advance.

The Dow Jones Industrial Average added 191 points, or 1%, to 17,684, with all 30 blue-chip components trading higher, led by financial firms American Express Co. (AXP), Visa Inc. (V), J.P. Morgan Chase & Co. (JPM) and Goldman Sachs Group (GS), which were leading the Dow.

The S&P 500 index climbed 21 points, or 1%, to 2,069, with all 10 main sectors in positive territory. Meanwhile, the Nasdaq Composite Index rose 60 points, or 1.3%, to 4,827.

Tuesday's advance comes on the heels of hawkish minutes from the Federal Reserve's latest policy meeting and comments from several officials that rate hikes may come as soon as next month.

The market sees a 30% chance of a June hike and a 46% chance of a July move, according to the CME Group's FedWatch tool (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).

"Today's big jump is purely a technical bounce and if we hold above the 50-day moving average, which we just crossed over, we might see some more upside in the market," said Lance Roberts, chief investment strategist at Clarity Financial, LLC.

Roberts noted that the big positive moves over the past few months tended to be erased by equally big negative moves, while the market is trapped in a range.

"The 2,040 seems to be a resistance level and breaking below that would mean further weakness in the market. The path of least resistance right now is a trend lower," Roberts said.

Other markets:Oil futures (http://www.marketwatch.com/story/oil-prices-stay-in-the-doldrums-on-supply-growth-concerns-2016-05-24) traded modestly higher. European stocks (http://www.marketwatch.com/story/european-stocks-turn-higher-led-by-gains-for-banks-2016-05-24) advanced, led by gains for banks. Asian markets closed mostly down (http://www.marketwatch.com/story/asia-stocks-retreat-on-weak-commodity-prices-uncertainty-over-fed-moves-2016-05-24), with blame be assigned to weak commodity prices and uncertainty over the timing of the next U.S. interest-rate increase. Gold futures lost ground, and the ICE U.S. Dollar Index gained ground.

Check out: This financial sector's boom in China could end with a bust (http://www.marketwatch.com/story/the-latest-scary-china-chart-this-financial-sectors-boom-could-end-with-a-bust-2016-05-24)

Economic news: New homes surged in April, a sign that builders are stepping up as demand for housing remains robust. Markets continued their advance after the data.

Company news: Ahead of the open, Toll Brothers posted quarterly profit and revenue that topped expectations (http://www.marketwatch.com/story/toll-brothers-profit-jumps-in-second-quarter-beating-views-2016-05-24). Shares gained in premarket trading.

Best Buy's quarterly results beat forecasts, but the company's guidance disappointed (http://www.marketwatch.com/story/best-buy-shares-sink-after-weak-guidance-2016-05-24) and shares fell premarket.

Shares of Kohl's Corp. (KSS) rose after a video of a woman who bought Chewbacca mask at the store went viral, getting more than 140 million views on Facebook.

 

(END) Dow Jones Newswires

May 24, 2016 10:15 ET (14:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.