Nasdaq Rises by 100 Points as Dollar General Exceeds Earnings Expectations
U.S. Stock Market Performance: U.S. stocks saw gains, with the Nasdaq Composite rising over 100 points; the Dow increased by 0.11%, and the S&P 500 rose by 0.24%.
Sector Movements: Communication services stocks jumped by 1%, while health care stocks fell by 0.6% on Thursday.
Corporate Earnings Highlights: Dollar General reported better-than-expected second-quarter results, while Sound Group Inc. shares surged 161% after announcing a special cash dividend.
Economic Indicators: U.S. pending home sales declined by 0.4%, initial jobless claims decreased to 229,000, and the economy expanded at an annual rate of 3.3% in Q2.
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Discount Retailers Show Strong Performance Amid Inflation
- Discount Retail Stock Performance: As of 2026, discount retail stocks in the S&P 500, such as Walmart and Costco, have significantly outperformed the S&P 500 index, with Walmart up 5.8% year-to-date and 26.6% over the past 52 weeks, indicating strong consumer demand for discount retail.
- Consumer Shift to Discount Stores: Due to inflation, 28% of high-income households shopped at discount chains in 2025, up from 20% four years earlier, suggesting that discount retailers are attracting a broader consumer base.
- Same-Store Sales Growth: In Q4 2025, same-store sales increased by 4.2% at Walmart and 5.7% at Costco, reflecting consumer preference for discounted goods in a high-price environment, further boosting these retailers' performance.
- Future Inflation Expectations: Although the inflation rate has decreased from 9% in June 2022 to around 2.7%, economists expect inflation to remain elevated through 2026, which will continue to benefit discount retailers as consumers remain price-sensitive.









