Investors, digesting yesterday’s rate decision from the Fed, were heartened by resilient consumer spending data
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Key Takeaways
- Microsoft, notching an all-time high, led the Dow higher.
- Amgen moved higher after poaching a top executive from rival Moderna.
- American Express fell after an analyst warned of waning credit card sales.
The Dow Jones Industrial Average (DJIA) rose 1.3%, or about 430 points, after retail sales data showed Americans are still increasing their spending, a sign of resilience amid slowing inflation.
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Retail sales rose 0.3% in May, defying Wall Street expectations of a decline. Initial jobless claims also came in higher than expected, pointing to a potential softening of the labor market. The encouraging data helped lift stocks across the board with the S&P 500 and the Nasdaq both rising 1.4%.
Leading the Dow higher was Microsoft (MSFT), which climbed 3.1% to reach an all-time high of $347.89. Buoyed by its investments in artificial intelligence breakout OpenAI, Microsoft’s shares are up 45% so far this year.
Every sector gained, with technology, up 1.3%, one of the day’s best performers. Shares of Cisco Systems (CSCO) rose 1.9%, while Salesforce (CRM) gained 1.2%.
Amgen (AMGN) shares were up 2.6% after reports that it hired away rival Moderna’s (MRNA) chief medical officer Paul Burton for a similar but expanded role at Amgen.
The Dow’s most influential component, UnitedHealth Group (UNH), rose 1.4%, bouncing back from yesterday’s sell-off.
Only two of the Dow 30 stocks finished the day in the red. Nike (NKE) shares fell 0.4% after jumping almost 6% yesterday. American Express (AXP) shares also fell 0.4% after Citi warned that credit card spending is slowing.