S&P 500 Jumps as U.S. Retail Sales Post Third Straight Month of Growth

The S&P 500 (SPX) is trading higher on Thursday following a retail sales update from the U.S. Census Bureau.

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U.S. retail sales rose 0.5% month-over-month in April, in line with expectations but falling from 1.6% in March. Retail sales have now grown for three consecutive months. Core retail sales, which exclude categories like autos and gas, climbed 0.7% and also matched the estimate while falling from 1.9% in the prior month.

Consumers Stay Resilient Despite Elevated Gas Prices

The data signals that consumers have remained resilient in light of higher energy prices caused by the closure of the Strait of Hormuz. Since the start of the U.S.-Iran war, the price of a gallon of gas in the U.S. has surged 52%, or $1.55, to $4.53. At the same time, retail sales data isn’t adjusted for inflation, meaning the growth could reflect higher prices.

In addition, tax refunds and a rally in stocks may have provided a temporary boost to consumer spending.