Wall Street marches ahead as retail sales quell slowdown worries
(Reuters) -- Wall Street's main indexes rose about 1% on Thursday as retail sales data for July indicated resilient consumer spending, allaying fears of an imminent recession in the world's biggest economy.
All megacap and growth stocks edged up, with Tesla leading the pack, rising 4.1%.
Nine of the 11 major S&P 500 sectors were trading higher, with consumer discretionary and materials leading gains.
Retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown that were fanned by a jump in the unemployment rate last week.
"The economy is not going into a recession imminently. This will take 50 basis points in September off the table. Still think that 25 basis points make sense just because inflation continues to ease," said Steve Wyett, chief investment strategist at BOK Financial.
The yield of the two-year and 10-year Treasury notes rose after the data, with traders increasing the bets for a 25 basis points rate cut by the Federal Reserve to 75% versus 65% before the data.
Meanwhile, retail bellwether Walmart added 7.5% after raising its annual profit forecast for the second time this year, as Americans kept flocking to its stores for inexpensive essentials.
Rival Target also jumped 4.8%, while Costco advanced 2%.
A separate reading also showed the number of Americans filing new applications for unemployment benefits unexpectedly fell last week.
Investors have kept a cautious eye on this week's data releases -- the last set of economic indicators before Fed Chairman Jerome Powell delivers a much-anticipated speech at Jackson Hole next week.
Atlanta Fed President Raphael Bostic told the Financial Times that he is open to an interest rate cut in September, while St.