It was just days ago that the July employment report sent the stock market into a tailspin. The economy created fewer-than-expected jobs and the unemployment rate rose.
But things look different today.
The U.S. Commerce Department reports retail sales unexpectedly rose by 1% last month, much higher than the 0.3% many economists expected. The sales numbers suggest consumers are still spending, in spite of higher prices and higher-than-normal interest rates.
At the same time, the financial markets are taking the view that the job market might not be so bad after all. The weekly report on initial jobless benefit claims came in lower than expected, suggesting fewer-than-expected people are getting laid off.
Earlier this week the Labor Department reported that the Consumer Price Index (CPI) rose less than expected, and for the first time since 2021 the annual inflation rate is below 3%.
The news was greet with optimism on Wall Street. The S&P 500 rose by nearly 1% in early trading Thursday
