Stock market today: Dow soars 555 points as strong economic data calms recession worries

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  • Aug 16, 2024
Stock market today: Dow soars 555 points as strong economic data calms recession worries
Reuters

Indexes rose sharply across the board on Thursday as investors reacted to encouraging retail sales and jobless claims data.

The Dow jumped 555 points, a 1.4% increase, while the S&P 500 saw a 1.6% rise and the Nasdaq composite climbed 2.3%.

The gains come after retail sales data showed a 1% increase in July, led by spending in the auto and electronics sectors, the Commerce Department said Thursday. That increase outpaced analyst expectations of 0.3%.

Jobless claims for last week, also reported Thursday, fell to 227,000, a decrease of 7,000 from the prior week. The encouraging data comes after a weaker-than-expected July jobs report helped kickoff a market selloff last week.

Treasury yields rose too, with the 10-year treasury yield up more than 10 basis points to 3.926%.

Retail sales and jobless claims data seem to be continuing to ease investor worries over the strength of the US economy after yesterday's CPI report added further confidence that inflation is easing.

Here's where US indexes stood at the 4 p.m. closing bell on Thursday:

Data released Wednesday showed consumer inflation cooled to 2.9% in July, its lowest level in over three years. Sticky housing inflation accounted for 90% of the rise in core CPI , the Bureau of Labor Statistics said, making it the biggest factor keeping inflation high as the Fed targets 2%.

Investors continue to see a 100% chance that the Fed cuts rates in September, with a 65% chance of 25 basis points and a 36% chance of 50 basis, according to the CME FedWatch tool .

Here's what else happened today:

In commodities, bonds, and crypto:

Read the original article on Business Insider