Encouraging economic data suggests the economy could avoid a recession, creating optimism among investors about continued growth in the market.
Wall Street remains close to its record levels this Thursday, after the latest signs that the economy American still in good condition.
The S&P 500 is up 0.6% and flirting with its record level reached earlier this week. The Dow Jones Industrial Average climbs 0.3%, to its own all-time high set the previous day, and the Nasdaq Composite index advances 0.9%.
Nvidia and other chip companies led the charge after the global giant Taiwan Semiconductor Manufacturing Co. inreported higher profits in the latest quarter than analysts expected, attributing the strength to demand related to smartphones and artificial intelligence. US-listed shares of TSMC jumped 8.2%.
Nvidia’s 2% rise was the main driving force for the S&P 500, marking a notable turnaround from earlier in the week, when a warning from a major Dutch supplier to the chip industry, ASML, sent shares tumbling. throughout the sector.
Other market data
Treasury yields were also rising in the bond market, following the latest encouraging reports on the US economy. US retailers made more sales in September than in August, and underlying growth trends in the data were better than economists expected.
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The strength was “even more impressive in the face of tight household finances, especially among low-income buyers, and pre-election jitters,” according to Gary Schlossberg, market strategist at Wells Fargo Investment Institute. Separately, a separate report indicated that fewer workers in the U.S. filed for unemployment benefits last week, signaling that layoffs nationwide are relatively low and are not hurting the labor market.
These data reinforce the hope that has driven US stocks to records: The economy could make a perfect exit from the worst inflation in generations, one that does not end with a recession that many investors considered almost inevitable.. And with the Federal Reserve now cutting interest rates to help the economy continue to boom, expectations among optimists are that stocks can continue to rise.
Lower interest rates ease constraints on the economy, raise investment prices, and make borrowing less costly for households and businesses. And rates are declining around the world, with just a couple of exceptions.
Source: Ambito
