The U.S. stock market experienced a positive movement on Thursday because retail sales exceeded expectations and corporate earnings results were positive. The June retail sales increased by 0.6% while jobless claims decreased to 221,000 which indicates strong labor market performance and consumer spending patterns.
PepsiCo experienced the largest market increase of 6.6% because its healthier beverages and energy drinks segment performed well despite lower profit projections. The majority of S&P 500 sectors experienced positive movements with consumer staples demonstrating the strongest performance. The AI-driven demand at TSMC led to record profits which caused both Nvidia and Marvell stock prices to increase.
The market indices showed the following changes at 9:39 a.m. ET: The Dow Jones Industrial Average rose 149 points (0.34%) and the S&P 500 increased 0.09% and the Nasdaq gained 0.11%. The market reacted positively to evidence that American consumers continue their active spending despite ongoing inflation worries.
The market remained reactive to political news after President Trump’s potential Fed Chair Jerome Powell firing speculation caused market volatility on Wednesday. The President denied these reports yet his ongoing criticism of the central bank continues to create doubts about the Federal Reserve’s independence.
Market participants now predict a 54% probability of a September rate cut while July seems to be ruled out. Fed Governor Adriana Kugler emphasized that rising prices due to tariffs require policymakers to exercise caution in their decision-making process.
