Wall Street’s main indexes closed higher on Thursday, with retail sales falling more than expected, raising hopes that the Federal Reserve will begin cutting interest rates in the coming months.
A Commerce Department report showed a decline in retail sales in the United States by 0.8 percent in January, a much lower percentage than expectations of a 0.1 percent decline based on a Reuters poll.
The Standard & Poor’s 500 index closed at a new record high, as the three major indices ended Thursday’s trading session in positive territory, after compensating for the sharp losses incurred earlier in the week. This marks the 11th record the 500-stock index has reached so far this year.
The broader index rose by 0.58%, to settle at 5,029.73 points, while the Nasdaq Composite Index added 0.30% to close at 15,906.17 points. The Dow Jones Industrial Average rose 348.85 points, or 0.91%, to 38,773.12 points.
Tesla and Mietta outperformed, rising 6% and 2%, respectively. Wells Fargo shares rose 7% after the Office of the Comptroller of the Currency completed a major penalty on the bank.
Investors spent the week assessing the current state of the US economy, but a series of indicators have given mixed signals so far.
Earnings season continues to paint a mixed picture for corporate America. TripAdvisor jumped 9% after beating estimates at the top and bottom. On the other hand, Cisco shares fell 2% after the technology company announced layoffs and weak sales expectations. Deere stock fell 5% after the farm machinery maker cut its full-year earnings guidance.
Stocks have swung this week after a hotter-than-expected inflation reading sent the market tumbling on Tuesday, with the Dow Jones posting its biggest single-day loss since March 2023. The 30-stock index rose 0.26% during the week, while the The Dow Jones index rose 0.26% during the week. The S&P 500 is set to close the week with a gain of 0.06%. However, the Nasdaq is headed for a loss of 0.53%.
- European stocks
European stocks rose on Thursday as strong corporate results pushed French and German stocks to record highs as investors weighed comments by European Central Bank President Christine Lagarde on low inflation in the euro zone.
The French CAC 40 index closed at an increase of 0.9 percent, approaching the highest level it reached during the day, with the car manufacturer Renault leading the gainers.
Renault shares jumped 6.5 percent after the company announced gains in profit margins and revenues and a huge increase in cash dividends. The move also pushed Europe’s auto index to its highest level in almost two years.
The CAC 40 index also received support from a 2 percent increase in Pernod Ricard stock, as the alcohol company maintained its long-term growth forecast.
The German DAX index also recorded its highest level during the day and closed at a record high of 0.6 percent.
Commerzbank shares recorded the best performance on the index, rising 5.5 percent, as the bank announced its largest profits in 15 years during 2023, supported by rising interest rates.
The European STOXX 600 index rose 0.6 percent to the highest level in more than two years, with Goldman Sachs raising its target for the index for the year 2024 to 510 points, representing an increase of approximately five percent from current levels.
Investors reached positive conclusions after Lagarde said at a session of the European Parliament in Brussels that the latest economic data from the euro zone indicate that inflation is heading towards the target rate as expected.
The British Financial Times 100 index gained 0.4 percent, as data showed that the British economy entered a recession in the second half of 2023, which strengthened bets that the Bank of England would move to ease its monetary policy.
2024-02-15 21:48:08
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