NEW YORK, New York - Wall Street closed higher on Thursday, with major indexes extending gains as robust corporate earnings and encouraging economic data bolstered investor confidence. The S&P 500 climbed to a fresh record, while the Dow Jones Industrial Average and Nasdaq Composite also posted solid advances.

Market Performance

• S&P 500 (^GSPC): Rose 33.66 points (0.54 percent) to close at 6,297.36

• Dow Jones Industrial Average (^DJI): Gained 229.71 points (0.52 percent) to finish at 44,484.49

• Nasdaq Composite (^IXIC): Jumped 153.78 points (0.74 percent) to settle at 20,884.27

Earnings Season Exceeds Expectations

Quarterly earnings reports this week have largely surpassed Wall Street's forecasts, driving optimism among investors. According to FactSet data, 88 percent of the 50 S&P 500 companies that have reported so far have beaten analysts' expectations. This strong performance has reinforced expectations of healthy corporate profitability despite lingering inflation and interest rate concerns.

Economic Data Supports Bullish Sentiment

Key economic releases on Thursday further fueled the rally:

• Jobless claims fell to 221,000 for the week ending July 12, down 7,000 from the previous week, signaling continued resilience in the labor market.

• Retail sales in June rose 0.6 percent, surpassing the 0.2 percent estimate, indicating robust consumer spending despite higher borrowing costs.

Market Outlook

With earnings season in full swing and economic indicators pointing to sustained growth, analysts remain cautiously optimistic. However, some investors are monitoring Federal Reserve commentary for clues on future rate moves, which could influence market momentum in the coming weeks.

Next Week's Highlights:

• More heavyweight earnings reports

• Fed Chair Powell's testimony before Congress

• Preliminary PMI data

Market volumes were robust, with the S&P 500 seeing 3.014 billion shares traded, while the Nasdaq recorded 9.057 billion shares exchanged.

FX Market Report – Thursday

Market Overview:
The forex market saw mixed movements on Thursday as investors weighed economic data and central bank expectations. The U.S. dollar showed strength against some major counterparts, putting the euro and commodity-linked currencies under pressure.

Key Currency Pairs:

• EUR/USD: The pair traded at 1.1597, struggling to gain momentum amid lingering concerns over Eurozone growth and energy supply risks. A stronger USD kept the euro subdued.

• GBP/USD: Sterling edged higher to 1.3418, supported by improved risk sentiment, though Brexit-related uncertainties and UK economic challenges capped gains.

• USD/JPY: The pair climbed to 148.58, nearing multi-decade highs as the Bank of Japan's ultra-dovish stance continued to weigh on the yen.

• USD/CHF: The Swiss franc weakened slightly, with the pair at 0.8039, as the USD's strength offset safe-haven demand.

• USD/CAD: The Canadian dollar softened, pushing the pair to 1.3747, as oil price volatility and a firm USD weighed.

• AUD/USD: The Aussie dipped to 0.6490, pressured by risk-off sentiment and weaker commodity prices.

• NZD/USD: The Kiwi underperformed, trading at 0.5930, as global growth concerns dampened demand for risk-sensitive currencies.

Outlook:

The US dollar remains supported by Fed rate hike expectations, while the euro and commodity currencies face headwinds. Traders will monitor upcoming economic data and central bank rhetoric for further direction.

Global stock markets mostly climbed on Thursday, with European indices leading the charge as investors reacted to positive economic data and easing inflation concerns.

Global Stock Markets Trade Mixed on Thursday 

Stocks around the world had a mixed day on Thursday with Canadian, UK and European markets surging, while in the Asia Pacific region, the key indices were mixed.

Toronto's Key Index Jumps

• S&P/TSX Composite (^GSPTSE): Added 233.96 points (0.86 percent) to reach 27,386.93

UK and Europe Rally Strongly

The FTSE 100 (^FTSE) in London rose 46.09 points, or 0.52 percent, closing at 8,972.64. Meanwhile, Germany's DAX (^GDAXI) surged 361.55 points, or 1.51 percent, to 24,370.93, marking one of the strongest performances in the region.

France's CAC 40 (^FCHI) gained 99.91 points, or 1.29 percent, ending at 7,822.00, while the broader EURO STOXX 50 (^STOXX50E) climbed 79.08 points, or 1.49 percent, to 5,377.15.

Other notable European movers included:

• BEL 20 (^BFX): Up 50.45 points, or 1.13 percent, to 4,530.00

• Euronext 100 (^N100): Gained 20.11 points, or 1.28 percent, to 1,586.18

Mixed Performance in Asia and Pacific

Asian markets were more subdued, with Hong Kong's Hang Seng (^HSI) dipping slightly by 18.81 points, or 0.08 percent, to 24,498.95.

Japan's Nikkei 225 (^N225) closed higher by 237.79 points, or 0.60 percent, at 39,901.19, while China's Shanghai Composite (000001.SS) edged up 13.05 points, or 0.37 percent, to 3,516.83.

Singapore's STI Index (^STI) rose 29.18 points, or 0.71 percent, to 4,161.43, while Australia's S&P/ASX 200 (^AXJO) advanced 77.20 points, or 0.90 percent, to 8,639.00. The broader All Ordinaries (^AORD) added 74.40 points, or 0.84 percent, closing at 8,890.80.

India's SENSEX (^BSESN) bucked the trend, falling 375.23 points, or 0.45 percent, to 82,259.24, weighed down by profit-taking in key sectors.

Other Key Markets in Asia and Pacific

• Indonesia's IDX Composite (^JKSE): Jumped 95.00 points, or 1.32 percent, to 7,287.02

• Malaysia's KLSE (^KLSE): Added 9.44 points, or 0.62 percent, to 1,520.94

• New Zealand's NZX 50 (^NZ50): Soared 150.82 points, or 1.18 percent, to 12,905.41

• South Korea's KOSPI (^KS11): Inched up 5.91 points, or 0.19 percent, to 3,192.29

• Taiwan's TWSE (^TWII): Gained 70.38 points, or 0.31 percent, to 23,113.28

Middle East Markets Surge

• Israel's TA-125 (^TA125.TA): Rose 23.86 points, or 0.78 percent, to 3,087.84

• Egypt's EGX 30 (^CASE30): Surged 347.20 points, or 1.04 percent, to 33,821.00

Outlook

Analysts attributed the bullish sentiment in Europe to optimism over corporate earnings and expectations of potential interest rate cuts later in the year. Meanwhile, Asian markets remained cautious amid mixed economic signals from China.