US Markets
Home›US Markets›Indices›Wall Street retreats from record as weak retail data c…
Wall Street retreats from record as weak retail data clouds growth
The S&P 500 fell 0.2% after a report showed shoppers spent less at U.S. retailers, adding pressure to the inflation versus growth debate.
U.S. stocks pulled back from record highs on Friday as investors digested a report pointing to surprisingly weak consumer spending at retailers. The S&P 500 slipped 0.2% from its prior all-time high, the Dow Jones Industrial Average fell 107 points, or 0.2%, and the Nasdaq composite declined 0.3%, according to Associated Press.
The weak retail-sales update came as oil prices rose and added to the day’s uncertainty. Brent crude climbed 1.7% to $88.52 a barrel amid ongoing concerns about when conditions in the Persian Gulf will allow oil tankers to exit more freely.
Markets face a trade-off from the consumer-data signal, as lower spending could ease pressure on inflation but also raises the risk of economic slowing while inflation remains elevated. Earlier this week, reports suggested inflation’s pace is decelerating, which could make it easier for the Federal Reserve to keep interest rates on hold rather than pursue further hikes.
The article also notes that investors are wary of turning too bullish or too bearish on one data release, pointing out that retail activity in earlier months may have been boosted by unusual factors. Still, policymakers are constrained by having to weigh both high inflation and a potentially slowing economy, a combination often described as “stagflation.”
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%|S&P 500 7,785.76 ▼0.2%