16.05.201820:44:00UTC+00Wall Street Gains as Retail Rallies

U.S. stocks advanced on Wednesday, boosted by gains in shares of retailers despite persisting worries about tighter financial conditions and geopolitical concerns.

Investors have been focused recently on worries over rising inflation and interest rates pushing up borrowing costs. Nonetheless, some analysts expect solid earnings to support stocks.

The Dow Jones industrial average closed 62.52 points higher at 24,768.93, with Nike as the best-performing stock in the index. The Nasdaq composite rose 0.6 percent to 7,398.30. The small-cap Russell 2000 index increased one percent and reported a record close.

The S&P 500 gained 0.4 percent to 2,722.46 as the consumer discretionary sector climbed 0.8 percent. Of the 11 major sectors of the S&P 500, only rate-sensitive utilities and real estate stocks ended in the red. The tech sector added 0.4 percent, and gave the S&P 500 its biggest boost among the major sectors.

Macy's shares surged 10.8 percent on better-than-expected quarterly earnings. The company's same-store sales, a key metric for retailers, increased 4.2 percent last quarter versus an estimate of 1.4 percent.

The retailer's surge boosted the broader retail sector. The SPDR S&P Retail ETF soared 1.6 percent on Macy's move, its best day since April 10.

Facebook Inc was the worst performer on the S&P 500, closing down 0.6 percent, on news that Chief Executive Mark Zuckerberg would appear before members of the European Parliament to answer questions about the improper use of users' data.

3M added the most pressure on the Dow, falling 1.1 percent after Jefferies downgraded the stock to "hold."