Index Up: Dow 0.46%, S&P 500 0.46%, NASDAQ 0.74%
Chip Stocks Jump after TSMC’s record quarterly profit
PepsiCo expects a smaller decline in core profits over the year, share
Retail sales will increase by 0.6% in June
(Market price will be updated at 2:15pm and add more details and comments)
By Pranav Kashyap and David French
July 17 (Reuters) – Nasdaq composites rose to record highs on Thursday. Other key indicators on Wall Street are also moving forward, as strong economic data and positive revenues supported investors.
Retail sales in the US bounced sharply in June, releasing economic momentum and trust among consumers.
The data was the latest set of a week that was considered a clue to the timing of the strong market profit sustainability since April and the Federal Reserve’s potential interest rate cuts.
Economic data is somewhat mixed, with retail sales being strengthened, combining a stagnant producer price and consumer inflation surge in June with a surge in consumer inflation in the same month. Investors believe that the US Central Bank will curb interest rate cuts as it weighs the impact of President Donald Trump’s import tariff inflation.
Traders are currently limiting the chances of their September moves above 54%, according to CME’s FedWatch tool.
“We’re looking forward to seeing you in the future,” said Jason Barsema, president of Halo Investing.
Gov. Adriana Kugler warned that interest rate cuts are pending for now as Trump’s tariffs begin to push consumer prices up and are still key to curbing inflation expectations.
The US Treasury Department fell following retail sales data.
At 2:15pm ET, the Dow Jones industrial average rose to 202.04 points (0.46%) to 44,457.00, with the S&P 500 increasing its 28.94 points (0.46%) to 6,292.72, and the NASDAQ Composite increasing its 153.86 points, or 0.74% to 20,884.35.
What comes with powerful retail sales was a bright commentary from American companies aimed at consumers.
PepsiCo can help forecast bright results supported by demand for energy drinks and healthier sodas, and offset concerns about dipping in core profits for the year. The company’s shares rose 6.9%.
United Airlines has scored 3.2% after carriers projected stronger demand from early July, offering a rare, bright spot for an industry strained by Trump’s budget cuts and trade tensions.
Rivals Delta and American Airlines also climbed over 1% each.
“Today is a day that justifies consumer health and revenue, and we continue to be impressed with the way we provide relief to the market,” said Keith Buchanan, senior portfolio manager at GlobalT Investments.
Technology inventory was also supported, and another record-finished index has now become the course. That 1% gain was the highest among the 11 S&P sectors.
The US chip maker has raised the edge after TSMC, the leading producer of advanced AI chips, recorded record quarterly profits and said that demand for artificial intelligence is getting stronger.
TSMC’s US list stock added 3.7%, Marvell added 2.1%, and Nvidia added 1.1%.
Wall Street also watched Netflix ahead of its quarter results after the market was closed. The stock rose 1.6%.
On Wednesday, the market was whipped after suggesting that Trump was pondering the expulsion of Fed Chairman Jerome Powell. Trump quickly shot down the report, but his persistent criticism of the Fed and hints for possible ouster have made investors uneasy.
Meanwhile, tariffs looming with the August 1 deadline remained , threatening higher collections for many U.S. trading partners. (Reporting by Pranav Kassiapu and Nikhil Sharma of Bengaluru and David French in New York, edited by Maju Samuel and David Gregorio)
