Warren Buffett Loves Sirius XM's Sinatra Station. Berkshire Will Be Its Biggest Holder. — Barrons.com

Consumer stocks rose late Thursday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) climbing 1.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) jumping 3.3%.

In corporate news, Paramount Global shares soared 7.4%. Edgar Bronfman Jr. is close to making an offer for the company, Bloomberg reported.

JD.com shares popped 4.5%. The company reported higher Q2 revenue driven by gains in retail and logistics, while its earnings surged well ahead of analysts' expectations.

Ulta Beauty shares surged past 11% after Berkshire Hathaway reported its holding of about 690,000 shares in the cosmetics company.

Walmart shares gained 6.6% after the company raised its full-year outlook as fiscal Q2 results topped market estimates amid gains across all segments.

Consumer stocks rose Thursday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) gaining 1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) jumping 3%.

In corporate news, Ulta Beauty shares surged 12% after Berkshire Hathaway reported its holding of about 690,000 shares in the cosmetics company.

Walmart shares rose 6.8% after the company raised its full-year outlook as fiscal Q2 results topped market estimates amid gains across all segments.

Tapestry reported better-than-expected fiscal Q4 results and expects 2025 earnings to rise from a year earlier. The shares climbed 3.5%.

US equity indexes jumped in midday trading Thursday as retail sales grew at more than twice the pace forecast, lowering bets for a 50 basis-point interest-rate cut this month as concern alleviated the economy is heading into a significant slowdown.

The Nasdaq Composite climbed 2.1% to 17,551.2, with the S&P 500 up 1.4% to 5,530.3 and the Dow Jones Industrial Average 1.2% higher at 40,483.8. All sectors, except real estate and utilities, rose intraday, with consumer discretionary and technology leading the gainers.

The rise in US retail sales was fueled by gains in spending on cars and electronics, Census Bureau data showed Thursday. Sales rose 1% in July following a downwardly revised 0.2% decline in June. Analysts were modeling a 0.4% increase in a survey compiled by Bloomberg. Annually, retail sales were up 2.7% in July.

"The rebound suggests that despite mounting pressures on consumers' balance sheets (as savings dwindle and wage growth slows), the US consumer is not out yet," TD Economist Shernette McLeod said in a note. "That said, consumer spending is still expected to slow as 2024 draws to a close."

For now, consumer activity continues to support growth, Stifel said in a note.

Treasury yields advanced, with the 10-year surging 11 basis points to 3.93%, while the two-year rate catapulted 16 basis points to 4.11%, reflecting growing optimism that the economy is not facing a hard landing. The CBOE Volatility Index (VIX) declined 3.5% to 15.63, continuing to retreat from the 65-level seen earlier this month when July's gloomy nonfarm payrolls signaled a hard economic landing and as a so-called yen carry trade unraveled.

The probability of a 50 basis-point US interest-rate cut on Sept. 18 sank to 24% by Thursday afternoon from 36% at close on Wednesday and 55% a week ago, according to the CME Group's FedWatch Tool. This drop indicates, incorporating the soft-and-not-dire inflation data this week, that the Federal Reserve will not kick off its policy easing cycle with a drastic move.

Meanwhile, West Texas Intermediate crude oil jumped 1.8% to $78.36 a barrel.

In company news, Ulta Beauty's shares soared nearly 12% intraday, the top performer on the S&P 500, after Berkshire Hathaway disclosed it acquired a stake in the company.

Cisco Systems shares jumped 7% intraday, among the biggest gainers on the S&P 500, the Nasdaq, and the Dow, a day after the company posted a slower-than-anticipated decline in fiscal Q4 non-GAAP earnings and sales and outlined a restructuring program.

Gold rose 0.6% to $2,495.52 an ounce, and silver rose 4.3% to $28.51.