US Stocks: S&P 500, Nasdaq climb over 1% amid signs of easing geopolitical tensions

10 of the 11 major S&P sectors advanced in early trading, with 9 of them up at more than 1% each.

US stock indexes have climbed up on Thursday after upbeat annual forecasts from several retailers. Also, the data confirmed the US economy has contracted in the first quarter. Thus, easing concerns about aggressive interest rate hikes.

All of the 11 major S&P sectors advanced in early trading with consumer discretionary up 3%. Which was followed by a 1.7% rise in the financials sector.

Macy’s Inc jumped 12.1% after the department store showed its annual profit forecast. As party-wear is in demand after the certain easing of curbs which were imposed during the COVID-19 pandemic.

Dollar General Corp and Dollar Tree have  gained 13.2% and 17.8% respectively. Thus, predicting their annual sales forecasts. As data show more Americans turn to discount stores due to the rise in inflation rate.

Whereas, the Commerce Department’s report showed U.S. gross domestic product has been down at a 1.5% annualized rate last quarter, revised down from the 1.4% declined in April.

The economy grew with a lot of resistance to upper circuit 6.9% pace in the fourth quarter. In another scenario weekly jobless claims fell to 210,000 last week, consistent with a tight labor market despite rising interest rates and tightening financial liquidity.

Thomas Hayes, chairman of Great Hill Capital said. ‘These numbers are indicative that growth is slowing. Demand is slowing and maybe prices are even starting to slow. And if all those three things are in place, then the case for a dovish pivot will build over the summer months,”.

The reality is a lot more complicated at this juncture and so we will have these counter trend rallies in any bear market environment”. Said Hans Olsen, chief investment officer of Fiduciary Trust Company.

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