US: Stocks rally as recession fears recede

WALL Street logged a strong showing on Thursday (Aug 15) with all three major indices rallying on the back of encouraging consumer data that soothed earlier fears of a potential downturn.

The Dow Jones Industrial Average rose 1.4 per cent to 40,563.06, while the broad-based S&P 500 added 1.6 per cent to 5,543.22.

The tech-focused Nasdaq Composite Index surged by 2.3 per cent to 17,594.50.

This came after US retail sales rose 1.0 per cent in July from June, exceeding expectations and reassuring investors about the health of the world’s biggest economy.

“The retail sales numbers pushed back fears of a recession,” said Peter Cardillo of Spartan Capital.

“It shows that the consumer is not hibernating,” he added.

SEE ALSO

US: Wall Street opens higher on retail sales boost

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Jobless claims data also showed that initial claims fell in the week ending Aug 10, adding to signs that the labour market is weakening but not too rapidly.

Retail giant Walmart reported higher revenues on Thursday too, on greater e-commerce and advertising sales, prompting a 6.6 per cent rise in its shares.

The company’s earnings are closely watched as a gauge of the broader health of US consumers, given its size and scale in the country. AFP