Stocks ripped higher Thursday as Wall Street took in signals that pointed to a still-strong US consumer and labor market. The Nasdaq Composite (^IXIC) popped more than 2.3%, while the benchmark S&P 500 (^GSPC) rose more than 1.6% and the Dow Jones Industrial Average (^DJI) rose about 1.4%, or roughly 550 points.
In focus early Thursday were earnings from retail giant Walmart (WMT), as well as monthly government retail sales data and an update on jobless claims. For its part, Walmart’s stock surged more than 6% after a largely positive report in which it posted both earnings and revenue beats. The company also raised its full-year outlook.
Last month’s retail sales, meanwhile, soared far past Wall Street’s expectations in a sign that US consumers remain quite resilient. Retail sales rose 1% in July, above estimates for a 0.4% rise.
Also in focus is the normally routine update on weekly jobless claims. Last week, those claims fell more than forecast, sparking a market surge that has largely pervaded this week. And they fell again this week to 227,000, shafting expectations for a pickup, a key development as economists argue the jobs market is “where the action is going to be” for the Fed in the near future.
After a brutal start to August, stocks have been on a tear, including in Wednesday’s session, after the Consumer Price Index posted its lowest year-over-year increase since early 2021. The S&P 500 and Nasdaq have now recouped all of their losses from a sell-off that began at the start of the month.
