Stock market today: Indexes rise after retail sales boosts confidence on the consumer and the economy

• Indexes rose Thursday as investors cheered in a surprise increase in retail sales and lower jobless claims.
• Retail sales jumped 1% in July, surpassing analyst expectations of 0.3%.

Indexes rose Thursday as investors priced in an influx of new data on retail sales and jobless claims following the week's encouraging data on inflation.

Retail sales were up 1% in July, the Commerce Department said Thursday. That increase, led by spending in the auto and electronics sectors, surpassed expectations of 0.3% from analysts surveyed by Dow Jones.

"Today's retail sales numbers were a blowout versus consensus, but more importantly it should lay to rest (at least for the moment) all of the doom and gloom that was expressed at the beginning of this month," Chris Zaccarelli, head of investments at Independent Advisor Alliance, said in a Thursday note.

Meanwhile, jobless claims last week came in below estimates at 227,000, a 7,000 fall from the week prior. The reading should continue to soothe fears of a coming wave of unemployment after July's jobs data was weaker than expected.

Treasury yields rose on the new data, with the 10-year bond yield up 12 basis points to 3.947% as investors dialed back expectations for a jumbo 50 basis point rate cut from the Fed next month.

The rebound in retail and upbeat labor data follows a day after consumer inflation figures released Wednesday showed inflation cooled to 2.9% in July, its lowest level in over three years.

The Bureau of Labor Statistics said that sticky housing inflation accounted for 90% of the rise in core CPI, making it the biggest factor keeping inflation high.

The inflation numbers are still above the Fed's 2% target, but steady progress is being made as it looks to cool the economy without causing a dramatic spike in the unemployment rate.

Investors see a 100% chance that the Fed cuts rates in September, with a 65% chance of 25 basis points and a 36% chance of 50 basis, according to the CME FedWatch tool.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:

• S&P 500: 5,512.09, up 1.04%
• Dow Jones Industrial Average: 40,476.15, up 1.17% (+468 points)
• Nasdaq composite: 17,415.29, up 1.3%

Here's what else is going on today:

• After selling half its stake in Apple, Warren Buffett's Berkshire Hathaway is betting on a glow-up for Ulta Beauty with a $266 million stake.
• China's population decline is having a widespread impact on the world's second largest economy as marriages, diamond sales, and retail spending drop.
• Borrowers are rushing to refinance their mortgages as rates tumble to their lowest level in over a year.

In commodities, bonds, and crypto:

• Oil futures rose. WTI crude increased 1.6% to $78.17 a barrel. Brent crude, the international benchmark, rose 1.5% to $80.95 a barrel.
• Gold rose 0.32% to $2,487.50 per ounce.
• The 10-year Treasury yield rose 12 basis points to 3.947%.
• Bitcoin rose 0.37% to $57,592.39.