Nasdaq 100 and S&P500: Tech and Consumer Sectors Fuel Strong Market Rebound

Stocks Rally as Economic Data Boosts Confidence

U.S. stocks surged on Thursday as positive consumer and labor market data reassured investors, easing fears of an imminent recession. The S&P 500 climbed to within 3% of its record high, marking a strong 3% gain for the week. All three major U.S. indexes are now trading above their levels from early August, erasing losses from the global market sell-off earlier this month.

At 15:35 GMT, the Dow Jones Industrial Average is trading 40451.14, up 442.75 or +1.11%. The S&P 500 Index is at 5527.44, up 72.23 or +1.32% and the Nasdaq 100 Index is trading 17525.28, up 332.68 or +1.94%.

Dow Gains 450 Points as Economic Data Shines

The Dow Jones Industrial Average led the charge, rising over 450 points, or 1.1%, on Thursday. This marks the sixth time in August that the index has posted gains exceeding 400 points. Weekly jobless claims came in lower than expected, while retail sales showed a significant increase, boosting investor sentiment. For the week, the Dow is up 2.4%, recovering much of the ground lost in the previous week’s broad sell-off. Despite these gains, the index remains down 0.9% for the month.

Consumer and Tech Sectors Propel Market Gains

The consumer and technology sectors were key drivers of Thursday’s rally, with several high-profile stocks posting significant gains. Retail giant Walmart surged over 6% after delivering better-than-expected earnings and raising its outlook, reinforcing confidence in consumer spending strength.

Tech heavyweight Cisco Systems also saw an 8% jump, bolstered by a strong fiscal fourth-quarter performance and strategic workforce reductions aimed at streamlining operations.

Retail ETF Sees Best Day in a Month

The SPDR S&P Retail ETF (XRT) had a standout session, climbing 3.3% by midday, on track for its best day since mid-July. The fund’s performance was fueled by sharp gains in several retail stocks. Ulta Beauty led the pack, surging over 10.5%, marking its best day since December 2023. Other strong performers included Ollie’s Bargain Outlet, Five Below, Victoria’s Secret, and Walmart, all of which saw gains exceeding 6% during the session.

Blue-Chip Leaders Drive Broader Market Optimism

Blue-chip stocks played a pivotal role in Thursday’s market strength. The Dow’s rally was significantly bolstered by Walmart’s impressive performance, while the broader tech sector benefitted from Cisco’s earnings beat. This mix of consumer resilience and tech sector strength underscores the broad-based nature of the current market rally, offering traders a more optimistic outlook as economic data continues to beat expectations.

Market Forecast

With strong retail sales and easing inflation, the market outlook has turned increasingly bullish. The S&P 500 and Dow are positioned for continued gains as investors regain confidence in the economic recovery. However, traders should watch closely for any shifts in the Federal Reserve’s policy signals as they could influence near-term market volatility.

Technical Analysis

E-mini Nasdaq-100 Index futures are soaring on Thursday after opening on the strong side of a key pivot at 19167.50. This level is new support.

Although the index is experiencing strong upside momentum, it could still face headwinds at 19641.00, or the 50-day moving average. However, this indicator is also a potential trigger point for an acceleration to the upside with the record high at 20983.75 the main objective.