Stocks Rise as Economic Data Boost Confidence

The stock market saw gains as economic data brightened the outlook for growth. The Nasdaq rose 2.3%, the S&P increased by 1.6%, and the Dow was up 1.3%.

Strong retail sales and falling jobless claims contributed to the positive sentiment. Walmart hit a record high after reporting upbeat earnings and raising its outlook.

Other gainers included Cisco Systems and Ulta Beauty. However, the Empire State Manufacturing and Philly Fed data showed mixed results.

Treasury yields rose, and there was a slump in July industrial and manufacturing production. The VIX, a measure of market volatility, touched a three-week low and saw its largest seven-day drop.

The odds of a 25bp Fed rate cut climbed to 74.5%. The rally in the stock market was fueled by the belief that the US economy is not headed for a recession.