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15/08/24
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Wall Street Soars After Strong Retail Sales Indicate Soft Landing
On Thursday, stocks on Wall Street rose strongly, after strong economic data indicated a soft landing for the economy in the U.S. while not preventing a rate cut by the Federal Reserve.
The NASDAQ Composite rose 200 points, or 1.2%, the S&P 500 rose 50 points, or 0.9%, and the Dow Jones Industrial Average rose 490 points, or 1.2%.
In July, U.S. retail sales increased by a bigger than expected amount, indicating resilience in consumer spending activity, easing fears of an imminent recession in the largest economy in the world.
Thursday according to Commerce Department data showed that last month, retail sales increased by 1%, accelerating from June’s unchanged reading, more than the expected 0.4%.
Retail sales lifted by 2.7% on an annual basis, after in June increasing by a revised lower 2.0%.
The number of Americans filing initial applications for unemployment benefits last week dropped, fueling concerns of a gradual easing of the labor market.
Softer producer price index and CPI readings this week suggested inflation was cooling, increasing expectations of a September interest rate cut.
Walmart stock gained close to 8% after the retail giant, often seen as a bellwether for retail demand, on Thursday reported its Q2 earnings, coming in higher than analyst expectations, driven by improved margins and strong e-commerce growth.
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