Investor confidence returned to Wall Street on Thursday as signs of a resilient U.S. economy lifted stocks, strengthened the dollar, and pushed the S&P 500 to a record close above 6,300. The rally came a day after speculation over Federal Reserve Chair Jerome Powell’s tenure briefly rattled markets.
Equities climbed broadly following encouraging economic data, including robust June retail sales and a fifth straight weekly decline in jobless claims — reaching the lowest level since mid-April. Economically sensitive stocks led the gains, with the Russell 2000 index of smaller companies rising 1.2%.
Short-dated Treasury yields advanced, while longer-dated bonds remained steady, reflecting tempered expectations for interest rate cuts. Money markets continued to price in fewer than two rate reductions from the Fed this year.
The tech sector also gained ground, driven by a bullish sales forecast from Taiwan Semiconductor Manufacturing Co., reinforcing investor confidence in continued artificial intelligence spending. Netflix Inc. added to the momentum in late trading, reporting strong earnings and raising its outlook.
Meanwhile, the dollar resumed its July rally, positioning the month as its best in 2025 so far.
In a significant legislative move, the crypto industry notched a major victory after Congress passed the long-awaited stablecoin bill, offering regulatory clarity and sparking renewed investor enthusiasm in digital assets.
