In the latest market update, benchmark equity indexes in the United States experienced a notable uptick as traders began to digest a fresh round of economic data and corporate earnings reports. As of midday Thursday, the Nasdaq Composite Index surged by 2.1%, reaching 17,557.2, while the S&P 500 also saw impressive gains, climbing 1.4% to settle at 5,530.3.
The Dow Jones Industrial Average followed suit, increasing by 1.1% to hit 40,466.8. Among the various sectors, the consumer discretionary and technology sectors emerged as the frontrunners, leading the charge with substantial gains. Conversely, the real estate and utilities sectors recorded a decline, illustrating the uneven nature of the market's recovery. On the economic front, the latest retail sales figures disclosed a stronger-than-anticipated rise in July, driven largely by increased spending on vehicles and electronics, according to data from the Census Bureau.
This uptrend in consumer spending has sparked conversations regarding future monetary policy adjustments by the Federal Reserve. Recently released official data indicated that the rate of annual consumer inflation unexpectedly decreased last month. This development has bolstered expectations that the Federal Reserve might consider easing its monetary policy as early as September.
A commentary from TD highlighted that with employment numbers continuing their downward trend and inflation appearing more manageable in recent reports, a significant shift in retail sales would be necessary to alter the current outlook on rate cuts. Consequently, for the remainder of the fiscal year, TD anticipates that the Federal Reserve will implement three quarter-point rate cuts. Meanwhile, confidence among U.S.
homebuilders remains tepid, registering at its lowest point since December 2023. Elevated interest rates and high home prices are taking a toll on sentiment, as noted in the latest findings from the National Association of Home Builders and Wells Fargo. In labor market updates, weekly applications for unemployment insurance in the United States experienced an unexpected decline, even as the four-week moving average for continuing claims reached its highest level since November 2021, according to the Department of Labor. In the bond market, the two-year yield surged by 15.6 basis points, climbing to 4.10%, while the ten-year rate increased by 11 basis points, now at 3.93%.
These movements indicate shifting investor sentiments amid the evolving economic landscape. Turning to company-specific news, shares of Cisco Systems ($CSCO) soared by 7.3%, making it the standout performer on the Dow on this particular day. The networking giant released its fiscal fourth-quarter results late Wednesday, which although showed a decline compared to the prior year, managed to exceed Wall Street's expectations.
In conjunction with the earnings report, Cisco announced a restructuring plan affecting approximately 7% of its global workforce, a move designed to streamline operations and bolster efficiency. Additionally, retail giant Walmart ($WMT) emerged as the second-largest gainer on the Dow during intraday trading, experiencing an impressive 6.6% increase following the company's upward revision of its full-year outlook.
This announcement was made based on its robust fiscal second-quarter performance, which surpassed market estimates across all segments. Agricultural machinery manufacturer Deere ($DE) also maintained its guidance for full-year net income despite a year-over-year decline in fiscal third-quarter results.
Still, the company's results exceeded analysts' expectations, leading to a 7.6% rise in its shares, which ranked among the leaders on the S&P 500. On the downside, shares of Fair Isaac ($FICO) declined by 3.3%, marking the most significant drop on the S&P 500. In commodities, West Texas Intermediate crude oil saw a rise of 1.8%, now trading at $78.40 a barrel.
Gold prices increased by 0.5%, reaching $2,491.50 per troy ounce, while silver prices surged by 3.8%, now valued at $28.38 per ounce. In summary, U.S. markets are responding positively to economic data and earnings reports, reflecting an optimistic outlook despite ongoing challenges in certain sectors..