Stock Market Benefits from US CPI Report
The US stock market is seeing major increases across all three indices and particularly for retailers like Wal-Mart and Target.
The US Consumer Price Index report was released earlier this week showing positive economic growth and pointing toward decreased inflation.
The stock market indices all jumped in response, with the Dow Jones gaining 500 points, an increase of 1.26%. The Nasdaq Composite increased even more, gaining 2.26%. The S&P 500 climbed by 1.54% as well, making for a very positive day at the stock market so far.
The US retail sales data came out stronger than expected, with the biggest gain since early 2023. Much of that was due to automotive sellers getting back on their feet after dealing with the damage caused by a national cyberattack.
Numbers from the CPI report were right on par with what was expected, and that should help the Federal Reserve to pull off an interest rate cut in September. A report from the Labor Department brought US inflation down a notchy, from 3.0% to 2.9%, helping it achieve a welcome low that has not been seen in years.
A Stronger Market
Retail sales were booming in July, and Wal-Mart (WMT) was one of the top benefactors of that increase. The company gained 6.61% on their stock in Wednesday and Thursday trading, making one of their sharpest increases in a while. From their earnings report, the company was able to beat expectations and improve their forecast for the remainder of the year.
Retail gains spilled over into Target (TGT) as well this week, as the company’s stock price grew by 4.15%. The gain seems to be directly related to both Wal-Mart’s increases and the positive retail reports coming in.
These booming retail sales are indications that the US economy is recovering, and perhaps that data can put many of the recession fears to bed. With inflation slowly ticking down and some upcoming interest rate cuts, we could see the current bullish market pick up even more momentum.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals