Continuing the upward trajectory observed in recent sessions, stocks surged significantly on Thursday. All major indices have seen gains, with the Nasdaq and S&P 500 experiencing their sixth consecutive session of advances.As of now, the Nasdaq and the S&P 500 are near their peak levels for the day. The Nasdaq is up 328.60 points, or 1.9%, at 17,521.20; the S&P 500 has increased by 69.67 points, or 1.3%, to reach 5,524.86, and the Dow Jones has climbed 416.35 points, or 1.0%, to 40,424.74.The rally on Wall Street was bolstered by a Commerce Department report indicating unexpectedly robust retail sales growth in July, alleviating concerns about the economic outlook.According to the Commerce Department, retail sales surged by 1.0% in July, following a revised 0.2% decline in June. Economists had anticipated a modest 0.3% increase, relative to the initial unchanged reading for the preceding month.Even excluding the spike in sales from motor vehicle and parts dealers, retail sales still rose by 0.4% in July, following a 0.8% increase in June. Economists had projected a marginal 0.1% increase in ex-auto sales.Walmart (WMT) shares experienced a notable upswing after the retail giant reported fiscal second-quarter results that surpassed analyst expectations and revised its full-year forecast upwards.Positive market sentiment was further driven by a Labor Department report revealing an unexpected decrease in initial claims for U.S. unemployment benefits for the week ending August 10th.The Labor Department reported that initial jobless claims dropped to 227,000, a reduction of 7,000 from the previous week’s revised level of 234,000. Economists had expected claims to edge up to 235,000 from the initially reported 233,000 for the previous week.”If the economy continues to be resilient—particularly alongside decelerating inflation—the Fed could initiate a rate-cutting cycle without the economy entering recession. History shows this creates a highly favorable environment for the stock market,” stated Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.Meanwhile, traders largely overlooked a Federal Reserve report indicating a more substantial than anticipated decline in U.S. industrial production for July.The report indicated a 0.6% decrease in industrial production during July, following a downwardly revised 0.3% increase in June. Economists had forecasted a 0.3% decline, compared to the previously reported 0.6% rise for June.Sector News Semiconductor stocks experienced a notable upswing, with the Philadelphia Semiconductor Index spiking by 3.3%.Networking stocks also showed considerable strength, as reflected by a 3.2% surge in the NYSE Arca Networking Index. Cisco Systems (CSCO) led the sector following better-than-expected fiscal fourth-quarter results and plans to lay off 7% of its workforce.Airline stocks displayed significant strength, with the NYSE Arca Airline Index soaring by 3.2%.Additionally, computer hardware, retail, and oil service stocks also moved sharply higher amid broad-based buying interest on Wall Street.Other Markets Internationally, stock markets across the Asia-Pacific region were mostly higher on Thursday. Japan’s Nikkei 225 Index rose by 0.8%, while China’s Shanghai Composite Index climbed by 0.9%.European markets also showed gains. Germany’s DAX Index surged by 1.7%, France’s CAC 40 Index increased by 1.2%, and the U.K.’s FTSE 100 Index was up by 0.8%.In the bond market, treasuries fell sharply after their recent gains. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, increased by 10.6 basis points to 3.928%.The material has been provided by InstaForex Company – www.instaforex.com
- Roche’s Xofluza Reduces Influenza Transmission In Phase III Study - September 19, 2024
- UK Car Registrations Plummet in August, Marking a Sharp Year-over-Year Decline - September 19, 2024
- Germany’s Car Registrations Plummet by Nearly 28% Year-Over-Year in August 2024 - September 19, 2024
