U.S. stocks rally as recent data showcase economic resilience


The U.S. stock market rose on Wednesday and extended its winning streak to four straight weeks, buoyed by signs of economic resilience.

The Dow Jones Industrial Average increased by 184.74 points, or 0.53 percent, reaching 35,273.03. Meanwhile, the S&P 500 rose by 18.43 points, or 0.41 percent, to 4,556.62, and the Nasdaq Composite edged up 65.88 points, or 0.46 percent, closing at 14,265.86.

The tech sector was one of the biggest drivers of gains in the S&P 500, with communication services leading the way with a 0.9 percent rise. Microsoft shares climbed 1.3 percent, while Google parent Alphabet rose 1.1 percent.

Despite the overall positive market sentiment, some stocks declined. Nvidia's shares dropped 2.5 percent. The chipmaker projected fourth-quarter revenue above Wall Street estimates but cautioned about potential sales declines in China due to U.S. export restrictions.

Energy stocks also declined 0.1 percent. The price of U.S. crude oil fell 0.9 percent after OPEC announced postponing its latest conference to next week. Energy companies Exxon Mobil and Halliburton slipped 0.4 percent and 0.8 percent, respectively.

"The signals for the market, despite concerns over the economy and consumer spending, is that this market has sustainability in what is probably the most hospitable season for the market," said Quincy Krosby, chief global strategist at LPL Financial.

Recent economic reports on jobless claims, durable goods and consumer sentiment suggest a potential economic slowdown. However, the decrease in new claims for unemployment benefits from 233,000 to 209,000 last week indicates continued strength, potentially averting a recession.

Wall Street closely monitors consumer spending and confidence reports to assess the economy's direction. In the meantime, investors are focusing on the latest corporate earnings reports.

Major retailers are the latest to unveil their financial results. Department store chain Nordstrom dipped 4.6 percent after lowering its annual profit forecast. Apparel retailer Guess also plunged 12.3 percent following a reduction in its financial outlook.

Global stocks review

Asian stocks were flat on Thursday local time, maintaining their weekly gains amid growing optimism that interest rates will decline globally in the coming year. However, trading activity worldwide was anticipated to be subdued due to the Thanksgiving holiday in the U.S.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.11 percent. Japanese markets are also closed for a national holiday on Thursday, but the Nikkei 225 recorded a 0.3 percent gain the previous day, which brought it closer to a three-decade high.

China's benchmark share index slid 0.3 percent on Thursday, with the real estate sub-index plummeting 0.8 percent. The decline was attributed to news of a major wealth management firm with significant exposure to the property market facing potential insolvency, with liabilities estimated at up to $64 billion.

Meanwhile, the Hang Seng index in Hong Kong retreated 0.7 percent, while Australian stocks shed 0.4 percent.

European shares soared to a two-month high on Wednesday, fueled by gains in interest-sensitive real estate stocks. The pan-European STOXX 600 index ended the day up 0.3 percent, with real estate stocks leading the rally, surging 1.5 percent.

The commodity-driven FTSE 100 index bucked the trend, slipping 0.2 percent as energy stocks, a significant weight in the index, mirrored the decline in crude prices following the postponement of an OPEC+ meeting.