Retail Sales Soar In July, Weekly Jobless Claims Undercut Expectations: Traders Lean Towards 25-Basis-Point Cut In September
Portfolio Pulse from Piero Cingari
U.S. retail sales surged by 1% in July, significantly exceeding expectations, while initial jobless claims fell short of forecasts, indicating a stronger labor market. Traders are now leaning towards a 25-basis-point rate cut by the Federal Reserve in September. U.S. index futures rose in premarket trading, with the Nasdaq 100, S&P 500, and Dow Jones futures all showing gains. The SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ) both recorded their fifth consecutive session of gains on Wednesday.

August 15, 2024 | 12:44 pm
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POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) also saw its fifth consecutive session of gains, supported by robust retail sales figures and a decline in jobless claims, which have heightened expectations for a 25-basis-point rate cut by the Federal Reserve in September.
Similar to SPY, QQQ benefited from the positive economic data, which has improved market sentiment and increased the likelihood of a rate cut, driving gains in the ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) recorded its fifth consecutive session of gains, driven by stronger-than-expected retail sales and lower jobless claims, which have increased the likelihood of a 25-basis-point rate cut by the Federal Reserve in September.
The positive retail sales data and lower jobless claims have bolstered market sentiment, leading to gains in SPY. The increased likelihood of a rate cut further supports this positive trend.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80