Wall Street Holds Near Its Record Following The Latest Weak Update On The US Economy

U.S. Stocks hovered near record levels Friday after a report showed retail spending fell short of expectations, adding to economic uncertainty. The S&P 500 rose 0.1% following its all-time high from the previous day, while the Dow Jones Industrial Average declined 27 points, or 0.1%, and the Nasdaq composite gained 0.1%.

A government report revealed shoppers spent less at U.S. Retailers last month compared with the previous month, surprising economists who had anticipated growth. The weak data could ease pressure on inflation, which remains elevated but has shown signs of decelerating in recent reports. This possibility may discourage the Federal Reserve from raising interest rates at its September meeting, shorter-term Treasury yields suggested.

The unexpected spending decline, combined with last week's weak jobs report, raised concerns about economic stagnation. Jennifer Timmerman, senior investment strategy analyst at Wells Fargo Investment Institute, cautioned against overreacting to the retail sales figures, noting that earlier months had benefited from unusual factors including large tax refunds, the World Cup, and an earlier Amazon Prime Day event.

The yield on the 10-year Treasury rose to 4.65% from 4.63% late Thursday. In individual stocks, Reddit jumped 14.7% after learning it would join the S&P 500 index on Tuesday. Applied Materials fell 4% despite reporting stronger profit and revenue than analysts expected, with CEO Gary Dickerson crediting global demand for artificial-intelligence technology. The stock had already more than doubled this year, with high expectations pressuring it downward.

Oil prices remained relatively steady, with Brent crude slipping 0.2% to $86.92. Abroad, London's FTSE 100 declined 0.1%, while South Korea's Kospi jumped 2.4% for its third consecutive gain of at least that magnitude.