US Market Reaction To Retail Sales Data, Israel's Secret Mission On Iran; Dow Jones Jumps On October 17

The US market showed a mixed reaction of flattish to slight buying tone as the news of the assassination of Hamas leader Yahya Sinwar broke out, who was the main mastermind of the October 7th massacre last year. Sinwar's killing brings hope of opportunity for the war in Gaza to end. Meanwhile, the date of Israel's secret plan for retaliation against Iran has reportedly been revealed. Also, sentiments were driven by the strong retail sales data, amidst lower-than-expected jobless claims.

US Market On October 17:

Dow Jones: The Dow Jones Industrial Average or DJIA ended at 43,239.05, up by 161.35 points or 0.37%, outperforming its counterparts.

S&P 500: This index ended flat but in red at 5,841.47, near its intraday low of 5,840.25.

Nasdaq Composite: The tech-heavy index Nasdaq closed at 18,373.61, marginally up. The index traded between 18,368.80 and 18,541.46 levels.

According to Trading Economics, US stocks finished mixed on Thursday, with semiconductor shares driving the gains after strong corporate and economic news. Nvidia advanced 0.9% while hitting an intraday record high after its key supplier, Taiwan Semiconductor (TSMC), posted robust Q3 earnings and raised its revenue outlook. TSMC's shares spiked 10%, lifting other chipmakers like Broadcom (1.7%).

Further, Trading Economics data revealed that the tech-driven rally helped US indices approach record levels, reversing some recent market jitters over AI chip demand. Strong retail sales data for September, showing a 0.4% rise, further bolstered sentiment. Additionally, jobless claims came in lower than forecast, reinforcing the view that consumer spending remains resilient. Traders are now turning their attention to upcoming Big Tech earnings, with Netflix set to report after the bell.

Global Trends:

As per the US government data, advance estimates of U.S. retail and food services sales for September 2024, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $714.4 billion, an increase of 0.4 per cent (±0.5 per cent) from the previous month, and up 1.7 per cent (±0.5 per cent) from September 2023.

Further, Retail trade sales were up 0.3 per cent (±0.5 per cent)* from August 2024, and up 1.4 per cent (±0.5 per cent) from last year. Nonstore retailers were up 7.1 per cent (±1.4 per cent) from last year, while food services and drinking places were up 3.7 per cent (±2.1 per cent) from September 2023.

Meanwhile, during the week ending October 12, the advance figure for seasonally adjusted initial claims was 241,000, a decrease of 19,000 from the previous week's revised level. The advance seasonally adjusted insured unemployment rate was 1.2 per cent for the week ending October 5, unchanged from the previous week's unrevised rate.

Coming to the Middle East war, as per the latest report, the Israel defence soldiers (IDF) have eliminated Hamas leader Yahya Sinwar, who was the main mastermind behind the October 7th attack on Israel soil last year.

Kamla Harris, US Vice President, stated that the elimination of Sinwar gives an opportunity to finally end the war in Gaza. Also, this increases the chances of hostages returning soon.

Additionally, reports are stating that Israel obtains a hit list of tycoons and their locations in Iran, which is supposedly going to be attacked. The response would be in the wake of October 2nd missile strikes by Iran on Israel. Meanwhile, the Jewish-majority country continues its ground operation in Lebanon, the home ground of Hezbollah.