Stocks soared on Thursday as Wall Street reacted to positive signals about the resilience of the US consumer and labor market. The Nasdaq Composite (^IXIC) jumped over 2.3%, the S&P 500 (^GSPC) gained more than 1.6%, and the Dow Jones Industrial Average (^DJI) climbed around 1.4%, or approximately 550 points.
Key highlights for the day included strong earnings reports from retail giant Walmart (WMT), encouraging monthly retail sales data, and a notable update on jobless claims. Walmart’s stock surged over 6% following a robust earnings report that exceeded both revenue and profit expectations. The retail giant also raised its full-year outlook.
Retail sales for July came in well above Wall Street’s forecasts, rising 1% compared to an expected 0.4% increase, indicating strong consumer spending.
Weekly jobless claims also played a significant role in the market’s positive momentum. Claims fell more than anticipated last week and dropped again this week to 227,000, surpassing expectations of an increase. This data is crucial as economists believe the jobs market will be a key focus for the Federal Reserve in the near term.
Following a rough start to August, stocks have rebounded significantly, including a strong performance on Wednesday after the Consumer Price Index revealed its lowest year-over-year increase since early 2021. The S&P 500 and Nasdaq have now recovered all losses from the earlier sell-off this month.
