US stocks rally as recession fears recede
Sign up now: Get ST's newsletters delivered to your inbox
Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
NEW YORK - Wall Street logged a strong showing on Aug 15, with all three major indices rallying on the back of encouraging consumer data that soothed earlier fears of a potential downturn.
The Dow Jones Industrial Average rose 1.4 per cent to 40,563.06, while the broad-based S&P 500 added 1.6 per cent to 5,543.22.
The tech-focused Nasdaq Composite Index surged by 2.3 per cent to 17,594.50.
This came after US retail sales rose 1 per cent in July from June, exceeding expectations and reassuring investors about the health of the world’s biggest economy.
“The retail sales numbers pushed back fears of a recession,” said Mr Peter Cardillo, of Spartan Capital.
“It shows that the consumer is not hibernating,” he added.
Jobless claims data also showed that initial claims fell in the week ending Aug 10, adding to signs that the labour market is weakening but not too rapidly.
Retail giant Walmart reported higher revenues on Aug 15 too, on greater e-commerce and advertising sales, prompting a 6.6 per cent rise in its shares.
The company’s earnings are closely watched as a gauge of the broader health of US consumers, given its size and scale in the country. AFP
