US stocks edged higher on Thursday, lifted by stronger-than-expected economic data and upbeat corporate earnings that helped ease investor concerns following a volatile session the previous day.
The S&P 500 rose 0.1%, while the Dow Jones Industrial Average added 151 points, or 0.3%.
The Nasdaq Composite gained 0.2%, continuing its upward momentum for the week.
PepsiCo shares surged over 5% after the company posted earnings that beat analyst forecasts.
United Airlines climbed 6% after delivering better-than-expected results, reinforcing optimism around the corporate earnings season.
Of the roughly 50 S&P 500 companies that have reported so far, 88% have topped Wall Street estimates, according to FactSet.
On the macro front, the Labor Department reported that initial jobless claims fell by 7,000 to 221,000 last week—the lowest level since mid-April—pointing to continued labour market resilience.
Meanwhile, June retail sales rose 0.6% from May, far exceeding the 0.2% rise projected by economists surveyed by Dow Jones.
The positive data helped offset lingering uncertainty after President Donald Trump denied reports that he intended to remove Federal Reserve Chair, Jerome Powell.
On Wednesday, stocks had briefly plunged, with the Dow falling as much as 264 points, after a White House official indicated Trump “likely will soon” fire Powell.
Markets later rebounded when Trump said he wasn’t planning to take that step, though he notably added, “I don’t rule out anything.”
With one trading day left in the week, the S&P 500 is up 0.3%, the Dow has gained 0.2%, and the Nasdaq is ahead by 0.9%.
US jobless claims fall
Applications for US unemployment benefits fell for a fifth consecutive week, signalling continued resilience in the labour market despite broader signs of a hiring slowdown.
Initial jobless claims dropped by 7,000 to 221,000 for the week ended July 12, marking the lowest reading since mid-April.
Consensus estimates were at a higher figure of 233,000.
The four-week moving average, which helps smooth week-to-week volatility, also declined to 229,500, the lowest since early May.
Continuing claims, which reflect the number of Americans receiving ongoing unemployment benefits, held steady at 1.96 million during the prior week that included the July 4 holiday.
While initial claims have returned to pre-pandemic levels after a brief uptick in May and June, persistently elevated continuing claims indicate that those out of work are still struggling to secure new employment.
Unadjusted data showed initial claims rising by 19,539 to 260,900, underscoring seasonal swings in the data.
Nonetheless, the underlying trend points to a labour market that remains tight but is gradually cooling.
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