Wall Street soars to record highs driven by strong economic signals

In the United States, financial markets exhibited robust performance on Thursday, July 17, 2025, with Wall Street achieving new record highs. The S&P 500 index rose by 0.5%, closing at 6,297.36, surpassing its previous all-time high from the week prior. Likewise, the Dow Jones Industrial Average and Nasdaq composite indices recorded gains of 0.5% and 0.7%, respectively, indicating a positive sentiment among investors. The uplift in market indices was largely attributed to several better-than-expected economic reports released earlier that day. Notably, reports indicated that consumer spending at U.S. retailers exceeded economists' forecasts, leading to optimism surrounding retail sales. Furthermore, a drop in unemployment claims suggested fewer layoffs, contributing to a stable labor market. Another report highlighted unexpectedly strong growth in manufacturing within the mid-Atlantic region, reinforcing the narrative of an expanding economy. In line with these developments, Treasury yields remained relatively stable, indicating that investors are weighing the implications of the economic data on future Federal Reserve policy actions. Analysts speculated that solid economic indicators might lead the Fed to maintain its current interest rate strategies. Federal Reserve Chairman Jerome Powell has previously emphasized the need for more data to assess the impact of ongoing trade tensions on inflation and growth. This caution suggests that while market gains are encouraging, the Fed's approach may continue to be data-driven, balancing economic growth with inflationary pressures. Internationally, global stock markets responded positively to the upward momentum on Wall Street. Markets such as the CAC 40 in France and the FTSE 100 in Britain experienced increases of 0.6% and 0.2%, respectively. Additionally, Asian markets reflected the positive trend, though Japan's Nikkei 225 saw a minor decline. The overarching sentiment across these markets was indicative of confidence in economic recovery, particularly in light of thriving sectors such as technology, which benefitted from strong earnings reports from major companies like PepsiCo and Taiwan Semiconductor Manufacturing Co. The latter reported a significant surge in net income driven by robust demand for semiconductors, particularly in the artificial intelligence and technology sectors, further supporting technological stock valuations. Despite these gains, market analysts remain cautiously optimistic, noting that recent volatility and uncertain geopolitical issues could present challenges ahead. The prevailing sentiment underscores the importance of monitoring future economic indicators which could influence both investor sentiment and policy decisions from the Federal Reserve.