US Data Damps Rate Hike Expectations as Global Markets Slide
Global markets experienced a mixed day on August 14, with US and European shares declining in response to new data that dampened expectations for a Federal Reserve rate hike next month. The US consumer sentiment deteriorated in early August due to the rising cost of living caused by the Middle East conflict. This development, combined with a surprise drop in US retail sales, led to a decline in the US dollar and supported gold prices.
The S&P 500 fell from record highs under pressure from shares in chip equipment maker Applied Materials, while the Nasdaq declined due to drops in Broadcom and Intel. The Dow Jones Industrial Average also decreased by 0.20%. The data reduced expectations of a Federal Reserve rate hike at next month's meeting.
The Brent crude oil futures settled at $88.52 a barrel, up 1.67%, while US futures finished at $82.40, up 1.42%. Thomas Martin, senior portfolio manager at GLOBALT Investments in Atlanta, noted that various parts of AI are driving market trends.