Retail Sales and Jobless Claims Boost Market Confidence
Global stock markets advanced Thursday as investors responded positively to strong U.S. economic data and corporate earnings. MSCI’s global equity index climbed 0.57%, while the dollar also rose. U.S. jobless claims declined, indicating sustained job growth in July, although some workers continue to face long unemployment periods due to moderated hiring trends.
Retail sales in June rebounded more than anticipated, partly reflecting price increases on tariff-affected goods. Analysts interpreted these figures as evidence of consumer resilience and labor market strength. Investment strategist Mike Cornacchioli noted that fears about the U.S. economy appear overstated based on the latest data.
Corporate Earnings Fuel Optimism
Earnings reports contributed to Thursday’s market momentum. Taiwan Semiconductor posted record profits, although it cautioned that U.S. tariffs may affect future income. GE Aerospace raised its profit outlook, citing rising jet engine deliveries and improved supply chains.
Europe’s STOXX 600 index gained 0.96% following record orders at Swiss firm ABB. In the U.S., PepsiCo shares jumped over 7% on better-than-expected quarterly results, while United Airlines rose on strong travel bookings. The Dow Jones rose 0.60% to 44,520.11, the S&P 500 climbed 0.57% to 6,299.10, and the Nasdaq increased 0.79% to 20,893.99—hitting new highs.
Currency and Bond Markets React
The dollar index rose 0.39% to 98.73, with the euro falling to $1.1585 and the dollar strengthening 0.58% against the yen, driven partly by political uncertainty in Japan. U.S. Treasury yields moved higher in a volatile session, with the 10-year note yield rising slightly to 4.459%. The 2-year yield, often linked to Fed rate expectations, increased to 3.915%.
The strong retail sales data reinforced expectations that the Federal Reserve will maintain its cautious stance. Economists noted that consumers continued spending, including on big-ticket items, despite tariff announcements and recent financial market volatility.
Oil Gains and Gold Retreats Amid Geopolitical Tensions
Oil prices rose sharply after drone attacks targeted Iraqi Kurdistan oil fields for a fourth consecutive day. U.S. crude settled at $67.54 per barrel, up 1.75%, while Brent climbed to $69.52, a 1.46% increase. Analysts warned that low-tech attacks reveal the vulnerability of global oil supplies.
Gold prices declined following the upbeat U.S. data. Spot gold dropped 0.26% to $3,337.49 an ounce, while U.S. futures fell 0.38% to $3,339.90. The combination of economic strength and geopolitical risk continues to drive market fluctuations across asset classes.
