NEW YORK, Oct. 17 (Xinhua) — U.S. stocks ended mixed on Thursday, as the latest retail sales data gave credence to the argument that the economy could be reaccelerating following a surprisingly strong September jobs report.
The Dow Jones Industrial Average rose 161.35 points, or 0.37 percent, to 43,239.05. The S&P 500 sank 1.00 point, or 0.02 percent, to 5,841.47. The Nasdaq Composite Index increased 6.53 points, or 0.04 percent, to 18,373.61.
Six of the 11 primary S&P 500 sectors ended in red, with utilities and communication services leading the laggards by dropping 0.93 percent and 0.69 percent, respectively. Meanwhile, energy and technology led the gainers by going up 0.44 percent and 0.42 percent, respectively.
U.S. retail sales in September rose by a seasonally adjusted 0.4 percent month on month, exceeding economists’ expectations of a 0.3 percent increase, according to data released by the U.S. Commerce Department’s Census Bureau on Thursday.
This followed an unrevised 0.1 percent gain in August, signaling stronger-than-anticipated consumer spending as the holiday season approaches. The data suggests that despite inflationary pressures, consumers are still willing to spend, providing a positive signal for the broader economy.
“Strong consumer spending in September suggests economic growth in the previous quarter was solidly above trend,” Jeffrey Roach, chief economist at LPL Financial, told Reuters. “Our baseline remains that the Fed will likely cut a quarter of a percent in both November and December.”
Initial claims for state unemployment benefits fell by 19,000 to a seasonally adjusted 241,000 for the week ending Oct. 12, according to the U.S. Department of Labor on Thursday.
This decline came alongside a strong labor market report, as nonfarm payrolls for September saw their largest increase in six months. The unemployment rate also improved, dropping to 4.1 percent from 4.2 percent in August. These figures indicated continued resilience in the labor market, despite ongoing economic uncertainties.
A reassuring update from the world’s largest contract chipmaker TSMC helped counter some of the negative sentiment caused by ASML’s disappointing forecast. TSMC posted strong quarterly results, highlighting robust demand for advanced artificial intelligence microprocessors, which remains elevated.
This positive news provided a boost to chip stocks, offering some relief to investors who worried about a broader slowdown in the semiconductor industry.
