S&P 500 Surges as Retail Sales Defy Economic Gloom—Wall Street Breathes (For Now)

Another day, another bullish signal for the 'everything's fine' crowd.

Retail resilience fuels rally: The S&P 500 climbs as consumers—against all odds—keep swiping those credit cards. Who needs savings when you've got FOMO?

Wall Street's relief rally: Traders celebrate the numbers like they've discovered a new zero-fee trading app. Spoiler: This won't last.

The cynical take: If retail sales are so strong, why are half these companies still pivoting to 'metaverse retail experiences'? Priorities.

Retail sales rose in July

July’s producer price index data, released a day earlier, had dampened investor sentiment following hotter-than-expected inflation figures.

However, fresh economic data released before the bell showed that retail sales ROSE 0.5% in July, meeting consensus estimates. Retail sales excluding automobiles rose 0.3%, also in line with forecasts. The previous month’s data was revised up to 0.9%, signaling steady consumer spending despite ongoing concerns about the U.S. economy.

Stock markets’ reaction to the report saw the S&P 500 and Dow Jones Industrial Average climb further to hit record highs. Analysts say surge in retail sales is a pointer to the robust U.S. consumer market. Data also showed import prices rose in July amid higher consumer goods prices.

In this context, the S&P 500 is bidding to extend its push above its all-time high, supported by gains in technology stocks and the cooler consumer price inflation data released earlier in the week. The S&P 500 and Nasdaq are both up more than 1% over the past week, while the Dow is up 2%.