Signs that the world’s largest economy is holding up lifted stocks a day after speculation about the fate of Federal Reserve Chair Jerome Powell rattled markets.
The dollar climbed. Short-dated bonds fell. The crypto industry got a major win after Congress passed the stablecoin bill.
Economically sensitive shares outperformed after solid retail sales and a drop in jobless claims, with the S&P 500 briefly topping 6,300 and closing at an all-time high.
The Russell 2000 gauge of small firms rose 1.2%. Tech gained as a bullish outlook from Taiwan Semiconductor Manufacturing Co. bolstered confidence in artificial-intelligence spending.
In late hours, Netflix Inc. reported strong earnings and raised its forecast. After a brief pause, the greenback resumed its advance for July – which is set to be its best month in 2025.
Treasury two-year yields rose while those on 30-year bonds were little changed. Money markets continued to price fewer than two Fed rate cuts this year. US retail sales saw a broad advance in June, tempering concerns about a retrenchment in consumer spending.
Meantime, applications for US unemployment benefits declined for a fifth straight week to the lowest since mid-April, showing a resilient job market.
