Wall Street is supported by United Airlines and solid data; Nasdaq hits records
The Nasdaq reached a record level on Thursday, leading to a cautious rise in the major indices of Wall Street, as solid economic data boosted morale and airline stocks soared thanks to United Airlines' results.
Retail sales in the United States rebounded sharply in June, signaling a resurgence of economic momentum and giving the Federal Reserve an additional reason to delay rate cuts as it assesses the inflationary impact of import tariffs.
Another indicator for consumer health, PepsiCo (PEP.O), opens a new tabThe company is forecasting optimistic results, driven by demand for energy drinks and healthier sodas, which will help it offset concerns about a decline in annual core earnings. The company's stock jumped 6.8%.
Investors have already navigated a whirlwind of mixed economic signals this week: producer prices stagnated in June, while a surge in consumer inflation dashed hopes for aggressive Fed easing.
Traders are now assessing the chances of a rate cut in September at just over 54%, with a decision in July being almost ruled out, according to CME's FedWatch tool.
"The Fed is going to be more cautious and data-focused than the market wants it to be," said Jason Barsema, president of Halo Investing.
Echoing this cautious stance, Fed Governor Adriana Kugler warned that rate cuts are on hold for now, as Trump-era tariffs start to drive up consumer prices and strict policy remains essential to keep inflation expectations under control.
Indices up: Dow 0.27%, S&P 500 0.38%, Nasdaq 0.70%
