Wall Street traders pushed stocks down from historical highs as data showed mixed signs of how American consumers feel about the economy. Investors also closely watched a personal meeting between Donald Trump and Vladimir Putin, UNN reports with reference to Financial Post.
Details
After rising from April lows, the S&P 500 index fell. Applied Materials Inc. led chipmakers' losses with disappointing forecasts. UnitedHealth Group soared as significant funds flowed to the insurer. Solar energy stocks rose. Long-term Treasury bonds showed lower performance. The dollar and oil retreated.
While we cannot predict the outcome of the Alaska summit, we are monitoring potential disruptive factors, as the trading environment, in our opinion, remains highly sensitive to headline risk.
Prior to this, economic data showed broad growth in US retail sales, driven by car sales and large online promotions. Later, a separate report showed that consumer sentiment unexpectedly fell for the first time since April, and inflation expectations rose.
Consumers are no longer preparing for the worst-case scenario for the economy, which was feared in April. However, consumers continue to expect both inflation and unemployment to worsen in the future.
Bret Kenwell says July retail sales figures were not necessarily explosive. However, control group sales, used in the calculation of gross domestic product, exceeded economists' expectations, while an already strong June report was revised even higher.
Retailers will begin reporting earnings next week, which should provide more insight into consumer behavior, he noted.
According to Chris Zaccarelli of Northlight Asset Management, as long as consumer spending remains high and companies can retain employees due to this high spending, the flywheel can continue to spin.
While the consumer looks relatively healthy, the Fed is in a difficult position with its dual mandate of maximum employment and stable prices. If they decide to cut rates, as the market currently expects, this could be another advantage for consumers.
Addition
US and Russian presidents, Donald Trump and Vladimir Putin, began negotiations in Alaska. During their handshake, B-2 bombers and F-22 fighters flew overhead.
"Historic": White House shows new photo of Trump-Putin meeting16.08.25, 00:07 • [views_9562]