Wall Street Climbs on Strong Economic Signals, PepsiCo's Positive Forecast
Wall Street's main indexes rose slightly, buoyed by strong results from PepsiCo and positive economic data. Retail sales exceeded expectations and job growth remained steady. Despite potential tariff impacts, an optimistic consumer outlook supports future earnings. Investor attention is on looming geopolitical tariffs and possible Federal Reserve actions.
Wall Street's major indexes saw a minor increase on Thursday, driven by positive economic data and PepsiCo's encouraging quarterly results. Retail sales in June surpassed expectations with a 0.6% increase, while initial jobless claims dropped to 221,000, indicating continued job growth.
The uptick signaled consumer confidence, though the market remains cautious about potential tariffs set for August. PepsiCo's shares surged 6.6%, thanks to strong demand for its energy drinks, despite concerns about core profit declines.
Investor focus was split between earnings updates and the Federal Reserve's stance on interest rates. While President Trump's remarks on Federal Reserve Chair Jerome Powell raised some volatility, Fed Governor Adriana Kugler advised against immediate rate cuts. Attention also turned to U.S.-India and Europe trade discussions, hinting at potential resolutions.
(With inputs from agencies.)
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