Stocks surge after strong retail sales data

Stock indexes soared as retail sales for July grew 1% surpassing forecast, easing recession fears. The S&P 500 climbed 1.6%, the Nasdaq gained 2.3% and the Dow Jones rose 1.4%.

Treasury yields jumped, with the 10-year yield rising 8 basis points to 3.91%, as jobless claims dropped to 239,000, the lowest since early July.

Ulta Beauty’s shares spiked 11.2% after Warren Buffett’s Berkshire Hathaway revealed its investment while Cisco’s stock increased 6.8% following plans to cut 7% of its workforce.

Investors now expect a 0.25% interest rate cut by the Federal Reserve in September.

The market’s improved outlook suggests a “soft landing” for the economy, where growth slows without slipping into a recession.