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Dow Jones hits new high, retail sales boom

The Dow Jones Industrial Average surged to a new record close, buoyed by robust economic data that alleviated concerns about a potential recession. In contrast, the S&P 500 fell short of setting a new benchmark despite achieving an intraday record earlier in the session, as the artificial intelligence sector saw renewed interest.

The Dow climbed 161 points, or 0.37%, finishing at 43,239.05, driven by a notable 9% increase in Travelers’ stock following its strong quarterly performance. Meanwhile, the Nasdaq Composite edged up 0.04% to close at 18,373.61, benefiting from gains in semiconductor stocks. The S&P 500, however, dipped 0.02% to settle at 5,841.47.

Chip stocks led Thursday’s market momentum but surrendered some gains as the session progressed. Nvidia, a key player in the AI sector, closed up 0.9% after hitting an all-time high earlier in the day. The stock received a boost from Taiwan Semiconductor Manufacturing Company (TSMC), which reported strong third-quarter earnings and raised its revenue outlook for the final quarter of the year. TSMC shares jumped 9.8% as a result.

Economic data released on Thursday also played a significant role in lifting market sentiment. September retail sales figures showed a 0.4% increase in consumer spending, surpassing the Dow Jones consensus estimate of 0.3%. Excluding autos, sales rose 0.5%, far exceeding the forecast of 0.1%. Additionally, jobless claims for the week ending October 12 were lower than anticipated.

In related news, the Federal Reserve is expected to maintain its current interest rate stance amid these economic indicators, focusing on sustaining growth while monitoring inflation trends. Investors will be keenly observing upcoming economic reports for further insights into the market’s direction as the year progresses.

Futures

The SPI futures are pointing to a 27 point fall.

Currency

One Australian dollar at 7.35am was buying 66.95 US cents.

Commodities

Gold has added 0.59 per cent. Silver has lost 0.31 per cent. Copper has lost 0.84 per cent. Oil has gained 0.51 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.67 per cent, Frankfurt added 0.77 per cent, and Paris gained 1.22 per cent.

Turning to Asian markets, Tokyo’s Nikkei lost 0.69 per cent , while Hong Kong’s Hang Seng fell 1.02 per cent and China’s Shanghai Composite lost 1.05 per cent.

Yesterday, the Australian share market closed 0.86 per cent higher at 8355.92.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
  
Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.