MSCI’s gauge of stocks across the globe gained 3.00 points, or 0.36%, to 831.73
World stock indexes mostly gained and the U.S. dollar rose against the yen on Tuesday after solid U.S. retail sales figures was taken as supporting prospects the Fed will lower rates to rein in inflation while aiming to avoid a recession.
Data showed retail sales unchanged in June from a May reading that was higher than initially estimated.
Echoing comments from Fed Chair Jerome Powell on Monday, Fed Governor Adriana Kugler said recent data indicates inflation is returning to the central bank’s 2% target. Investors are pricing in a cut of at least 25 bps at the Fed’s September meeting, show the CME’s FedWatch Tool.
The retail sales data suggest consumers are still spending, “so the market definitely saw that as a favourable data point,” according to Dustin Thackeray, chief investment officer at Crewe Advisors in Salt Lake City.
MSCI’s gauge of stocks across the globe gained 3.00 points, or 0.36%, to 831.73. The Dow Jones Industrial Average hit an all-time closing high of 40,954.48.
Investors kept pondering the implications of a possible Donald Trump victory in the upcoming U.S. presidential election following the attempted assassination on Trump on Saturday.
The Republican former president has indicated support for policies traditionally seen as friendly to domestic businesses, such as loosening regulation, increasing tariffs on some foreign imports and cutting taxes.
The S&P 500 added 35.98 points, or 0.64%, to 5,667.20 and the Nasdaq Composite advanced 36.77 points, or 0.20%, to 18,509.34.
Obviously the market liked the boost in his ratings and the potential for a Trump presidency. We know what we’re getting with Trump, Thackeray added.
Boosting the Dow and S&P 500 was UnitedHealth Group, which gained over 6% after strong results.
In Europe, the STOXX 600 declined 0.28%.
