The S&P 500 closed up 1.6% at 5,543, while the Nasdaq Composite surged 2.3% to 17,594, and the Dow Jones Industrial Average advanced 1.4% to 40,563.
The market rally was fueled by better-than-expected retail sales data in the US, with a 1.0% increase in July compared to the previous month, easing concerns of a recession.
Additionally, new jobless claims in the US came in below expectations at 227,000, a decrease of 7,000 from the previous week, further boosting market sentiment.
Walmart saw a significant jump in its stock price after reporting better-than-expected earnings and raising its full-year adjusted earnings per share outlook to $2.35-$2.43.
Other retail giants like Target, Costco, and CDW also saw gains of 4.4%, 1.7%, and 2.5%, respectively.
Chinese e-commerce giant Alibaba’s US-listed stock was up 0.1% despite falling short of revenue expectations, facing challenges from increased competition and cautious Chinese consumers.
Investors also turned their attention to Ulta Beauty and Nike following the latest 13F filings. Ulta Beauty surged 11% after Warren Buffett’s Berkshire Hathaway took a stake in the company, while Nike rose 5.1% as Bill Ackman increased his holdings.
Deere, a competitor of Volvo Construction Equipment, saw a 6.3% increase in its stock price after reporting higher revenues and better-than-expected results for the second quarter.
Dell’s stock rose over 7% after JP Morgan added it to their focus list, while Cisco, a networking equipment manufacturer, gained over 6.8% after slightly beating expectations in the latest quarter and providing an optimistic outlook.
Online brokerage firm Robinhood also saw a 4.9% increase after Deutsche Bank upgraded the stock to a buy rating.
Overall, the US ten-year treasury yield rose by 10 basis points to 3.93%, reflecting the positive market sentiment and strong economic data.