Retail sales in the US increased 0.4% in September, the largest increase since May 2015. This is a significant boost from August’s 0.1% rise and signals an end to retailers’ struggles with lackluster consumer spending during the summer months.
The how is the stock market doing is a question that has been asked for years. After retail sales boosted, the how is the stock market doing was able to recover and regain some of its lost value.
Consumer confidence in the United States decreased in early July, according to new statistics, owing in part to worries about rising inflation.
The S&P 500 lost some of its early gains and fell 0.3 percent, while the Dow Jones Industrial Average fell 150 points, or 0.4 percent. The Nasdaq Composite remained almost unchanged.
Several turbulent trading sessions have characterized the week as investors digested a higher-than-expected inflation figure on Tuesday. Chairman of the Federal Reserve, Jerome Powell, tried to reassure investors that the central bank views the price increase as unsettling but temporary, and that it isn’t in a rush to change its accommodative policies.
Investors sifted through a slew of mixed economic data on Friday. Consumer confidence in the United States fell in early July, according to a study, as a result of worries about rising prices. According to a University of Michigan poll, Americans’ anticipated inflation rate increased in July compared to June, with consumer concerns about increasing costs for houses, cars, and household durables hitting an all-time high.
Retail sales increased 0.6 percent in June, according to new statistics, as the economy expanded more widely and car dealers managed supply problems. Following the 1.3 percent decline in May, economists expected another drop.
In business news, Intel gained 0.3 percent after The Wall Street Journal claimed that the semiconductor behemoth was considering a $30 billion acquisition of chipmaker GlobalFoundries. Moderna’s stock surged almost 10% when S&P Global announced that the pharmaceutical firm will be included to the S&P 500 index on July 21.
Didi Global, a Chinese ride-hailing business listed on the New York Stock Exchange, dropped 2.9 percent after state security and police authorities were sent to the company’s headquarters on Friday as part of a cybersecurity probe.
The inflation rate recently hit a 13-year high, sparking speculation about whether the United States is approaching an inflationary era akin to the 1970s.
“The Fed is still being patient, and Powell has said that they would stay accommodating for some time,” said Salman Baig, a Unigestion multiasset investment manager. “That’s a favorable climate for risk taking—strong growth, reasonably steady bond rates, and investors will be willing to take on more risk.”
In bond markets, the yield on the benchmark 10-year Treasury note rose to 1.307 percent on Friday, up from 1.297 percent the day before, reversing a two-day decline.
The Stoxx Europe 600, a pan-European index, fell 0.7 percent overseas.
The majority of Asia’s main benchmarks finished the week on a negative note. The Shanghai Composite Index dropped 0.7 percent, while the Nikkei 225 in Japan sank 1%.
This essay was written with the help of Gunjan Banerji.
This week’s stock market has been choppy.
Reuters photo/Brendan McDermid
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