Wall Street Rides High on Robust Economic Signals
The S&P 500 and Nasdaq have notched fresh record highs, buoyed by a potent mix of resilient consumer data and better-than-expected corporate earnings. Thursday's rally closed with the S&P 500 up 0.54% at 6,297.36 and the Nasdaq Composite rising 0.75%, both notching their latest all-time marks. Key index futures pointed to further gains, reflecting continued optimism across the board.
Undergirding this confident march were signs of economic vigor: retail sales figures for June surprised to the upside, rising 0.6% from May and beating economists' expectations. Meanwhile, jobless claims fell to 221,000—a 7,000 week-on-week drop—reinforcing the narrative of a tight labor market. As Deutsche Bank’s Jim Reid observed, these data points “reassured investors that the consumer was still resilient,” adding momentum as earnings season ramps up.
Corporate Powerhouses Drive Rally—But Not Without Surprises
The ongoing earnings season has delivered more treats than tricks. Around 50 S&P 500 companies have reported so far, with 88% beating analyst expectations, according to FactSet. Notable outliers included PepsiCo, which jumped over 7% on an earnings beat, and Netflix, whose strong quarterly showing set a positive tone for tech, despite its stock taking a post-announcement breather. Healthcare and tech sectors led the charge, with eight of eleven index sectors ending Wednesday in the green.
Yet, there were pockets of volatility. Archer-Daniels-Midland and Ingredion stocks slumped after President Trump claimed Coca-Cola would switch to real cane sugar—a move sending ripple effects across ingredient suppliers.
Policy Drama Lurks Behind the Numbers
Despite a bullish tape, political intrigue remains on investors’ radars. Markets briefly swooned after rumors swirled that President Trump “likely will soon” fire Fed Chair Jerome Powell, reviving fears of central bank destabilization. The White House’s denial and Trump’s ambiguous retort (
