US stocks rose to all-time highs on Thursday as the latest economic data eased concerns over inflation and the potential for monetary policy tightening.
All major indices rallied, with the S&P 500 and Dow Jones posting the biggest growths. Ford Motor showed unexpected gains, while Facebook put some pressure on the Nasdaq 100 after giving cautious forecasts. All this allowed the S&P 500 to renew its record by closing 0.50% higher yesterday.
The latest GDP data showed that consumer spending was strong in the second quarter, despite overall gains lagging behind expectations. Then, a separate report showed that jobless claims fell last week, but were still above forecasts. The data came a day after Fed Chairman Jerome Powell said officials are approaching the point where they can start scaling back on bond purchases.
Mike Loewengart, a managing director in E*TRADE Financial, said the weaker-than-expected reports gave Powell's recent comments some strength, not to mention showed that there is still room for improvements in the labor market. As for the GDP report, it hints that growth may stall.
On a different note, the US Senate voted to pass the bipartisan bill worth $ 550 billion. This will be used to help stabilize the economy.
Other important events today are:
- GDP data from Germany;
- CPI from Europe;
- GDP report from Europe
- unemployment rate report from Europe.