- Stock indexes recorded big gains on Thursday, with the Dow Jones Industrial Average rising 555 points as investors digested new strong data.
- Newly released data showed retail sales rose 1% in July, beating analysts’ expectations of a 0.3% increase.
- The number of unemployment insurance claims filed last week was 227,000, down 7,000 from the previous week.
Stock indexes broadly surged on Thursday as investors reacted to upbeat data on retail sales and jobless claims.
The Dow Jones Industrial Average rose 555 points, or 1.4%, while the S&P 500 rose 1.6% and the Nasdaq Composite rose 2.3%.
The gains came after Commerce Department data on Thursday showed retail sales rose 1 percent in July, led by spending in the auto and electronics sectors, beating analysts’ expectations of a 0.3 percent increase.
Also released on Thursday was the number of jobless claims last week, at 227,000, down 7,000 from the previous week. The upbeat data came after a weaker-than-expected July jobs report sparked a sell-off last week.
Treasury yields also rose, with the 10-year Treasury yield rising more than 10 basis points to 3.926%.
Retail sales and jobless claims data continue to appear to ease investor concerns about the strength of the US economy, as yesterday’s Consumer Price Index report provided further assurance that inflation is easing.
As of the close of trading at 4 p.m. on Thursday, U.S. stock indexes were as follows:
Data released on Wednesday showed consumer price inflation fell to 2.9% in July, the lowest level in more than three years. Rising home prices accounted for 90% of the increase in core CPIThe Bureau of Labor Statistics said this is the single biggest factor keeping inflation high amid the Fed’s 2 percent inflation target.
Investors continue to see a 100% chance that the Fed will cut interest rates in September, with a 65% chance of a 25 basis point cut and a 36% chance of a 50 basis point cut. CME FedWatchTools.
Here’s something else that happened today:
Commodities, bonds and cryptocurrencies:
- West Texas Intermediate crude rose 1% to $76.04 a barrel, while the international benchmark Brent crude rose 0.9% to $79.02 a barrel.
- Gold rose to $2,463.30.
- The yield on the 10-year Treasury note rose 2 basis points to 3.98%.
- Bitcoin rose 8% to $59,549.
