The S&P 500 Index closed up 0.54%, the Dow Jones up 0.52%, and the Nasdaq 100 up 0.74% on Thursday, setting new record highs. The rise was fueled by a drop in weekly jobless claims to 221,000—a three-month low—and better-than-expected retail sales which rose 0.6% in June.
San Francisco Fed President Mary Daly’s dovish comments suggesting two 25 basis point rate cuts by year-end contributed to the market rally. However, the day also saw a significant drop of 12% in Elevance Health’s stock after the company cut its earnings outlook for the year. Furthermore, ongoing trade tensions were highlighted by President Trump’s announcement of impending tariffs on imports from several countries.
Market expectations indicate a 3% chance of a 25 basis point rate cut at the July 29-30 FOMC meeting and 58% for the subsequent meeting on September 16-17. Upcoming economic data releases include housing starts expected to rise 3.6% and a consumer sentiment index forecasted to climb to 61.5.
