Consumer spending saw a notable increase in September, reflecting growing economic momentum following the Fed's interest rate cuts
The Dow Jones Industrial Average surged Thursday morning, driven by robust retail sales data and a rally in chip stocks. Consumer spending saw a notable increase in September, reflecting growing economic momentum following the Federal Reserve’s recent interest rate cuts. A report from the U.S. Census Bureau revealed that retail sales climbed by a seasonally adjusted 0.4% for the month, an improvement over August’s unchanged 0.1% gain and surpassing the 0.3% rise predicted by economists.
In addition to the boost in consumer spending, the labor market continued to display resilience. Weekly initial unemployment claims fell to a seasonally adjusted 241,000—a drop of 19,000 from the previous week and below the forecasted 260,000. This decline signals sustained strength in the job market.
In the morning, the Dow Jones Industrial Average rose 129 points, or 0.3%, to 43,207. The tech-heavy Nasdaq $NDAQ and S&P 500 jumped 0.3% and 0.6%, respectively.
Taiwan Semiconductor Manufacturing Company (TSM+8.11%) (TSMC $TSM), the world’s largest chipmaker, saw its profits soar 54% in the third quarter, driven by continued demand for its artificial intelligence-capable chips.
The Taiwan-based company reported Thursday $23.5 billion in revenue for the quarter, up 36% from a year ago and topping Wall Street’s expectations. Net income came in at $10.1 billion, also blowing past estimates compiled by FactSet (FDS+0.42%). TSMC’s U.S.-listed shares jumped 9% in Thursday morning trading following the earnings report.
Expedia $EXPE (EXPE+4.75%) stock is climbing Thursday morning after a report that Uber $UBER (UBER-1.65%) has looked at buying the travel booking company in what would be its largest acquisition yet.
The Financial Times on Wednesday, citing people familiar with the process, reports that Uber has met with advisors in recent months after a third party brought up the idea. A focus of those discussions, which the Times says are still at a very early stage, was Uber CEO Dara Khosrowshahi, who joined Uber 2017.
— Rocio Fabbro and William Gavin contributed to this article.
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