(Reuters) – The New York Stock Exchange closed sharply higher on Thursday as economic data releases signaled resilience in activity and easing inflationary pressures, which led to lower government bond yields Americans.
Retail sales in the United States posted an unexpected increase in May, weekly jobless claims remained stable and import prices last month recorded their largest annual decline in three years.
The Dow Jones Industrial Average gained 1.26%, or 428.73 points, to 34,408.06 points.
The broader S&P-500 rose 1.22% to end at 4,425.84 points. The Nasdaq Composite advanced for its part by 156.34 points (+ 1.15%) to 13,782.82 points.
After opening lower, the day after the Federal Reserve declared the door open to two further rate hikes by the end of 2023 in the face of a solid economy, the S&P 500 and the Nasdaq Composite reached their 14-month highs and the Dow Jones a six-month high, supported by these statistics and the bet that US central bank rates are near their peak.
Yields on US Treasuries fell, pushing growth stocks that are most sensitive to rate changes higher. Apple, Microsoft and Meta Platforms gained between 1.1% and 3.2%.
The rise in crude oil prices has also led to higher values in the energy sector.
“There’s a lot of money in the hands of people who were scared of the recession and are coming back to stocks as those worries fade,” said David Russell, vice president at TradeStation.
Against the trend, the distribution group Kroger lost 2.69% after it disappointed expectations for its sales forecast.
Since the start of the year, the S&P 500 has taken around 15% and the Nasdaq 32%.
(Jean-Stephane Brosse)
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