Global markets: In a positive trading session on Thursday, US stocks made significant gains fueled by Walmart’s impressive earnings report and growing optimism regarding a potential debt ceiling deal. The S&P 500 rose by 39.07 points, or 0.94%, reaching 4,197.84. The Dow Jones Industrial Average also saw an increase of 117.25 points, or 0.35%, closing at 33,538.02. The Nasdaq Composite experienced a notable surge of 188.60 points, or 1.51%, ending the day at 12,689.44.
Walmart, a leading retail giant, reported better-than-expected results for the first quarter and raised its annual profit forecast. As a result, Walmart’s stock saw a 1.3% increase, reaching $151.47.
Additionally, a report revealed a decrease in US jobless claims last week, dropping to 242,000. However, an economic survey indicated a decline in existing home sales for the second consecutive month due to higher mortgage rates, which have made borrowing more expensive.
Netflix shares performed well, rallying by 9.80% after announcing that its recently launched ad-supported tier had garnered nearly 5 million active users per month.
On Wednesday, President Joe Biden and top US Congressional Republican Kevin McCarthy reiterated their commitment to reaching a deal soon to raise the debt ceiling.
In the bond market, the yield on the 10-year treasury rose to 3.64% from 3.57% late Wednesday, while the 2-year yield increased to 4.25% from 4.16%.
Currencies
The US dollar strengthened against the Japanese yen, rising to 138.68 yen from 137.61 yen. Conversely, the euro experienced a decline, falling to $1.0767 from $1.0838.
European Stocks Surge on Hopes of US Debt Ceiling Breakthrough
European stocks demonstrated significant gains on Thursday, driven by hopes of a breakthrough in the US debt ceiling negotiations. The pan-European STOXX 600 index rose by 0.4%, with the automobile and technology sectors leading the upward trend.
In individual markets, Britain’s FTSE 100 increased by 0.3% to reach 7,742.30, Germany’s DAX climbed 1.3% to close at 16,163.36, and France’s CAC 40 added 0.6% to reach 7,446.89.
Asian Markets Follow the Positive Trend
Asian markets also experienced positive momentum on Thursday. Hong Kong’s Hang Seng index rose by 0.9% to reach 19,727.25, while China’s Shanghai Composite increased by 0.4% to close at 3,297.32. South Korea’s benchmark Kospi ended the day up by 20.74 points, or 0.83%, at 2,515.40. Japan’s Nikkei 225 performed particularly well, gaining 1.6% and closing at 30,573.93. Australia’s S&P/ASX 200 index also saw a 0.5% increase, reaching 7,236.80. In New Zealand, the benchmark S&P/NZX 50 index rose by 0.2%, closing at 11,976.08.
Energy Prices and Precious Metals
Energy prices experienced some fluctuations during the trading session. Brent crude for July delivery fell by $1.10 to $75.86 per barrel, while the US crude oil benchmark for June delivery dropped 97 cents to $71.86 per barrel. Natural gas for June delivery saw an increase of 22 cents, reaching $2.
59 per 1,000 cubic feet.
In the precious metals market, gold for June delivery experienced a decline of $25.10, closing at $1,959.80 per ounce. Silver for July delivery also fell by 27 cents, reaching $23.63 per ounce.
In conclusion, US stocks rallied on Thursday, driven by strong earnings from Walmart and growing optimism surrounding the debt ceiling negotiations. European and Asian markets followed suit, experiencing notable gains as well. Energy prices and precious metals saw mixed performance during the trading session.