Wall Street's main indexes closed higher on Thursday, with the Nasdaq rising more than 2% after July U.S. retail sales data signaled resilient consumer spending, allaying fears of an imminent recession in the world's largest economy. Nine of the 11 major S&P 500 (SPY) sectors advanced, led by consumer discretionary and information technology.
Retail sales increased 1.0% after a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown fanned by a jump in the unemployment rate last week. Retail bellwether Walmart (WMT) rose 6.58% after raising its annual profit forecast for the second time this year as Americans flocked to its stores for inexpensive essentials. A separate reading also showed the number of Americans filing new applications for unemployment benefits fell unexpectedly last week.
Market Overview:
- U.S. retail sales jumped 1.0% in July, easing fears of a sharp economic slowdown.
- Walmart rose 6.58% after raising its annual profit forecast.
- Unemployment claims fell unexpectedly, adding to positive market momentum.
Key Points:
- Walmart, Target (TGT), and Costco (COST) shares gained following strong retail sales data.
- Cisco (CSCO) rose 6.8% after forecasting better-than-expected Q1 revenue and job cuts.
- Treasury yields (TLT) rose, increasing bets on a 25-basis-point Fed rate cut.
Looking Ahead:
- Focus shifts to Fed Chair Powell’s upcoming speech at Jackson Hole.
- Monitoring retail trends and economic data for further market direction.
- Potential impacts of corporate earnings on market sentiment.
The Dow Jones Industrial Average rose 1.39%, the S&P 500 gained 1.61%, and the Nasdaq (QQQ) advanced 2.34%. Walmart led retail stocks higher, while Cisco and Nike (NKE) also posted strong gains. Investors now await Jerome Powell's speech at Jackson Hole for further clues on monetary policy direction.
The positive retail sales data provided a much-needed boost to market sentiment, which had been dampened by concerns over an economic slowdown. With corporate earnings still in focus and the Federal Reserve’s next moves uncertain, the market is likely to remain volatile in the coming weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
