Wall Street rises driven by reports that the US economy remains strong

Shares rise this Thursday in Wall Streetdriven by a wave of reports which indicate that the economy of USA continues its march, despite signs of possible inflationary problems.

He S&P 500 experiences an increase of 0.5%. The Dow Jones Industrial Average rises 137 points, equivalent to 0.4%, reaching 34,712 and Nasdaq advances 0.5%.

As for the bond market, it is particularly active, with Treasury yields fluctuating following the release of mixed economic data.

Wall Street: the data that excites

One of the reports indicates that American consumerss spent more in retail last month than economists anticipated. This spending has been one of the pillars that has kept the economy afloat, although it could also be encouraging retailers to continue raising prices.

This heavy spending is the result of a notoriously resilient labor marketwhich has remained solid despite rising interest rates since last year. Additionally, according to another report released today, the number of applications for unemployment benefits last week was less than expectedindicating a decrease in layoffs.

A third report reveals that Wholesale prices rose more last month than economists expectedwhich could raise concerns if unexpectedly high inflation is passed on to consumers.

The Federal Reserve has been steadily raising interest rates with the goal of controlling inflation and bringing it back to 2%. The hope on Wall Street is that the slowdown in inflation since last summer signals that the Fed is done its cycle of rate increases, which can have a negative impact on the economy and investment prices.

Treasury yields initially rose following the release of Thursday’s reportsas concerns emerged that they could lead the Federal Reserve to raise rates again or keep them elevated for longer. However, economists noted that much of the rise in wholesale inflation last month was due to rising fuel prices, which can change sharply and quickly.

Excluding these prices and other volatile elements, lUnderlying inflation trends in Thursday’s report moved closer to economists’ expectations. This follows an earlier report on consumer inflation that showed an overall increase of 3.7% in August, largely due to an increase in fuel prices.