Wall Street posts modest rally on strong retail sales data a day after Dow took dire 800 point plunge in response to Treasury yield inversionThe S&P 500 and the Dow gained ground in a late rally on Thursday Investor sentiment was buoyed by positive surge in July retail sales dataChina however sent mixed signals as to whether a trade deal is nearNasdaq closed lower, weighed by a plunge in the shares of Cisco Systems Comes one day after inverted yield curve sent stocks into a tailspin
The S&P 500 and the Dow gained ground in a late rally on Thursday as upbeat retail sales data offset simmering U.S.-China trade tensions, one day after an inversion in the Treasury bond market sparked recession fears.
Wall Street zig-zagged from red to black and back much of the day as investors juggled mixed messages of a strong consumer and dropping U.S. Treasury yields.
The Nasdaq closed slightly lower, weighed by a plunge in the shares of Cisco Systems Inc, which reported a 25% drop in China sales and set sales and revenue forecasts well below analyst estimates..
‘You’ve an environment where we’re digesting the move down in interest rates and the yield curve yesterday,’ said Darrell Cronk, chief investment officer for Wells Fargo Wealth and Investment Management in New York. ‘Volume is lighter today. You’re not getting outsized movements one way or the other.’
It comes one day after the Dow closed down 801 points at 25,479, a loss of 3%, in the largest one-day point drop since October 2018.
Traders work after the opening bell at the New York Stock Exchange on Thursday at Wall Street