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Thursday's market gains seem to reflect optimism driven by solid economic data. Stronger-than-expected retail sales and a surprise rise in the Philadelphia Fed Manufacturing Index indicate that consumer spending and manufacturing are holding up well, suggesting resilience in the US economy despite higher interest rates. The drop in initial jobless claims further reinforces a stable labor market, adding to positive investor sentiment.

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The rally in chip stocks, particularly with TSMC's impressive performance, provided additional support to the tech sector, boosting stocks like Nvidia (NVDA), Broadcom (AVGO), and AMD. In the financial sector, Blackstone's strong earnings report helped lift the broader market. Looking ahead, all eyes will be on Netflix's earnings report later today, which could add to market momentum or introduce some volatility.

Meanwhile, the dollar's climb toward a multi-week high aligns with expectations that the Fed may slow the pace of rate cuts, bolstered by robust economic indicators. Additionally, the rise in the 10-year Treasury yield reflects ongoing investor reassessment of the Fed's policy outlook. The resilience of the US economy, paired with inflationary concerns tied to expansionary fiscal policy, suggests that markets anticipate some tightening ahead. Investors will be keen to see how these dynamics evolve, especially with the backdrop of an upcoming election and a mixed global economic environment.

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