U.S. shares rallied, with the Standard & Poor’s 500 Index closing at its highest level in more than two weeks, as retail sales data showed a resilient consumer before the Federal Reserve decides on Thursday whether to raise interest rates.
The S&P 500 gained 1.3 percent to 1,978.11 at 4 p.m. in New York, its highest since Aug. 28.
A report today showed retail sales climbed for a second straight month, a sign consumers may be looking past recent volatility in financial markets. Although confidence has taken a hit from stock-market turmoil and global-growth concerns, the data show households are still putting their savings from cheap energy to work.
Other data showed that while consumers are holding up, factories are struggling. U.S. factory production declined in August by the most since January 2014 as automakers scaled back after a surge the month before and a stronger dollar weighed on demand from overseas customers.
Meanwhile, a quarterly survey said chief executive officers of large U.S. companies are becoming less optimistic about the prospects for the world’s largest economy, with more leaders planning to cut capital spending and employment in the next six months. The Business Roundtable CEO Economic Outlook Index fell to the lowest level since 2012, according to results compiled by Bloomberg.
Source : Bloomberg