U.S. Stock Market Falls as Mixed Data Sparks Uncertainty

U.S. stocks moved mostly lower on Friday as investors reacted to a series of mixed economic reports. The data renewed uncertainty about inflation, interest rates, and the broader economic outlook.

The Dow Jones Industrial Average resisted the decline, adding 99.28 points (0.2%) to close at 45,010.54. In contrast, the S&P 500 fell 16.75 points (0.3%) to 6,451.79, while the Nasdaq Composite dropped 96.28 points (0.4%) to 21,614.39.

Retail Sales Up, Consumer Sentiment Down

The Commerce Department reported that retail sales rose 0.5% in July, matching forecasts. June’s sales were revised higher, from 0.6% to 0.9%. Excluding auto sales, the increase was 0.3%, also in line with expectations.

However, consumer confidence showed signs of weakness. The University of Michigan said its sentiment index fell to 58.6 in August, down from 61.7 in July. Analysts had expected a slight improvement to 62.0.

Inflation Outlook Turns Higher

The same report showed:

•One-year inflation expectations rose to 4.9% from 4.5%

•Long-term expectations climbed to 3.9% from 3.4%, ending a three-month decline

This increase spanned across age groups, income brackets, and political affiliations.

Additional Economic Signals

The Labor Department revealed that import prices rose more than anticipated in July. Meanwhile, the Federal Reserve reported a small pullback in industrial production for the month. Both figures added to market caution.

Sector Performance

Semiconductor stocks were among the day’s worst performers, with the Philadelphia Semiconductor Index falling 2.2%. Banking shares also retreated, as shown by the KBW Bank Index’s 1.4% drop.

Inflation fears resurface as fresh U.S. data pressures S&P 500 and Nasdaq

Healthcare stocks moved higher, lifting the Dow Jones U.S. Health Care Index by 1.3%.

Global Market Recap

In Asia, Japan’s Nikkei 225 jumped 1.7% to a record high, while China’s Shanghai Composite rose 0.8%.

In Europe, performance was mixed:

•France’s CAC 40 gained 0.7%

•Germany’s DAX traded flat

•The U.K.’s FTSE 100 slipped 0.4%

Bond Market Movement

U.S. Treasury yields fell for a second day. The 10-year note dropped 2.7 basis points to 4.320%, reflecting steady demand for safer assets.

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