Corporate earnings releases drove much of the market enthusiasm, with several major companies delivering results that surpassed analyst expectations. PepsiCo shares jumped more than 5% following better-than-expected earnings, while United Airlines gained 6% after the carrier beat earnings estimates, CNBC reported. The strong performance from these companies reflected broader trends in the current earnings season.

Quarterly earnings reports released during the week have consistently exceeded Wall Street's projections, fueling sustained investor confidence across multiple sectors. Approximately 50 S&P 500 components have reported their results thus far, with an impressive 88% of those companies exceeding analysts' expectations, according to FactSet data cited by CNBC. This performance has provided substantial support for the ongoing market rally.

Economic data releases on Thursday further reinforced positive sentiment about the US economy's underlying strength. The Labor Department reported that jobless claims for the week ending July 12 totaled 221,000, representing a decrease of 7,000 from the previous week, CNBC reported. This decline in unemployment claims suggested continued stability in the labor market.

Retail sales data provided additional encouragement for market participants, with June figures rising more than economists had anticipated. The US Census Bureau reported that retail sales increased 0.6% from May, significantly beating the 0.2% estimate from the Dow Jones consensus, according to CNBC. This robust consumer spending data reinforced confidence in the economy's consumer-driven growth.

"A reassuring retail sales result comes at the perfect time as earnings season kicks into gear," Bret Kenwell, eToro US investment analyst, told CNBC. "If earnings are more upbeat than expected and if management continues to tell a reassuring story about consumer spending, stocks could react favorably – even after a rally to record highs that some investors may view as overextended. At the end of the day, consumers are the backbone of the US economy."

Market volatility emerged from political developments affecting Federal Reserve leadership, creating temporary uncertainty among investors. Wall Street experienced a volatile trading session after President Donald Trump denied planning to fire Federal Reserve Chairman Jerome Powell from his position as Fed chief, CNBC reported. The political drama surrounding monetary policy leadership briefly disrupted market momentum.

Wednesday's trading session saw significant fluctuations after a White House official indicated that Trump "likely will soon" fire Powell from his post, according to CNBC. Equities initially declined on these reports but subsequently rebounded after Trump downplayed the speculation and stated he was "not planning on doing it," though he added that he does not "rule out anything."

The week's overall market performance has shown resilience despite the Federal Reserve leadership uncertainty. The S&P 500 is trading higher by 0.6% for the week, while the 30-stock Dow has gained 0.3%, CNBC reported. The Nasdaq has demonstrated particularly strong performance, jumping 1.5% for the week as technology stocks continued their upward trajectory.

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