Wall Street’s major indexes closed higher on Thursday (August 15), with the Nasdaq surging over 2 per cent as robust July US retail sales data eased concerns of an impending recession in the world’s largest economy. Retail sales rose 1.0 per cent in July, recovering from a downwardly revised 0.
2 per cent decline in June. The data helped to alleviate fears of a sharp economic slowdown, which had been stoked by last week’s unexpected rise in the unemployment rate. The Dow Jones Industrial Average climbed 554.
67 points, or 1.39 per cent, to 40,563.06.
The S&P 500 added 88.01 points, or 1.61 per cent, to 5,543.
22, while the Nasdaq Composite advanced 401.90 points, or 2.34 per cent, to close at 17,594.
50. Market movers Retail giant Walmart saw its shares rise 6.58 per cent after it raised its annual profit forecast for the second time this year, driven by strong demand for affordable essentials from consumers.
Competitors Target and Costco also posted gains of 4.35 per cent and 1.69 per cent, respectively.
Among other notable movers, Cisco Systems jumped 6.8 per cent following its better-than-expected first-quarter revenue forecast and an announcement that it would cut 7 per cent of its global workforce. Nike shares climbed 5.
07 per cent as billionaire investor William Ackman took new stakes in the sportswear company. Meanwhile, Ulta Beauty surged 11.17 per cent after Warren Buffett’s Berkshire Hathaway disclosed a stake in the cosmetics retailer.
Bond market dynamics In the bond market, the 10-year Treasury yield edged up to 3.91 per cent from 3.84 per cent late Wednesday, buoyed by the strong economic data.
The two-year Treasury yield, which more closely reflects expectations for Federal Reserve actions, increased to 4.09 per cent from 3.96 per cent.
Rate cut expectations Despite the upbeat data, traders continue to widely anticipate that the Federal Reserve will cut its main interest rate at its upcoming September meeting. However, expectations have shifted, with most now predicting a traditional quarter-point reduction rather than the half-point cut many foresaw just a week ago, when concerns about a slowing US economy were more pronounced. With inputs from agencies.
