Stock market today: S&P 500, Nasdaq rally to fully recoup losses from August sell-off

Stocks ripped higher Thursday as Wall Street took in
signals
that pointed to a still-strong US consumer and labor market. The Nasdaq Composite (
^IXIC
) popped more than 2.3%, while the benchmark S&P 500 (
^GSPC
) rose more than 1.6% and the Dow Jones Industrial Average (
^DJI
) rose about 1.4%, or roughly 550 points.

In focus early Thursday were earnings from retail giant Walmart (
WMT
), as well as monthly government retail sales data and an update on jobless claims. For its part, Walmart’s stock surged more than 6% after
a largely positive report
in which it posted both earnings and revenue beats. The company also raised its full-year outlook.

Last month’s retail sales, meanwhile,
soared far past Wall Street’s expectations
in a sign that US consumers remain quite resilient. Retail sales rose 1% in July, above estimates for a 0.4% rise.

Also in focus is the normally routine update on weekly jobless claims. Last week, those claims
fell more than forecast
, sparking a market surge that has largely pervaded this week. And they fell again this week to 227,000, shafting expectations for a pickup, a key development as economists argue the
jobs market is “where the action is going to be”
for the Fed in the near future.

After a brutal start to August, stocks have been on a tear,
including in Wednesday’s session
, after the Consumer Price Index posted its lowest year-over-year increase since early 2021. The S&P 500 and Nasdaq have now
recouped all of their losses from a sell-off that began
at the start of the month.