The Dow jumped more than 500 points, and the Nasdaq rose 2% on Thursday after July retail sales data signaled resilient consumer spending, allaying fears of an imminent recession in the world’s largest economy.

The Dow Jones Industrial Average advanced 554 points, or 1.4%, to 40,563.06.

The S&P 500 gained 1.6%, and the Nasdaq climbed 400 points, or 2.3% — the sixth straight positive session for both.

Nine of the 11 major S&P 500 sectors traded higher, with consumer discretionary and technology leading gains.

Retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown that were fanned by a jump in the unemployment rate last week.

Retail bellwether Walmart added 6.6% after raising its annual profit forecast for the second time this year as Americans flocked to its stores for inexpensive essentials.

Rival Target also jumped 4.4%, while Costco advanced 1.7%.

A separate reading also showed the number of Americans filing new applications for unemployment benefits unexpectedly fell last week.

“The wall of worry is beginning to crumble as sentiment is improving and the fundamentals support a risk-on bias,” said Terry Sandven, chief equity strategist at US Bank Wealth Management. “Retail sales were above expectations, Consumer Price Index numbers came in at a tolerable level, so the fundamental backdrop is consistent with rising equity prices.”

The yield of the two-year and 10-year Treasury notes rose after the data, with traders increasing the bets for a 25 basis points rate cut by the Federal Reserve to 76.5% versus 65% before the data. 

Investors have kept a cautious eye on this week’s data releases — the last set of economic indicators before Fed Chairman Jerome Powell delivers a much-anticipated speech at Jackson Hole next week.

Atlanta Fed President Raphael Bostic told the Financial Times that he is open to an interest rate cut in September, while St. Louis Fed chief Alberto Musalem stated that the time for the central bank to start easing monetary policy may be nearing.

Among other movers, Cisco Systems rose 6.8% after it forecast better-than-expected first-quarter revenue and said it was cutting 7% of its global workforce.

Nike climbed 5.1% as billionaire investor Bill Ackman built new stakes in the sportswear company, while Ulta Beauty jumped 11.2% after Warren Buffett’s Berkshire Hathaway acquired a stake in the cosmetics store chain.

Deere gained 6.4% after the farm, construction and forestry equipment maker beat analysts’ expectations for third-quarter profit.