Dow Set for Cautious Open Near 53,800 Amid Inflation, Retail Sales Concerns

The Dow Jones Industrial Average ended Friday's session at 53,732.41, down 107.58 points or 0.20% from the previous day.

Investors are now looking ahead to Monday's trading with inflation, consumer spending, oil prices, and Federal Reserve policy expectations as key market drivers.

The latest U.S. Consumer Price Index showed annual inflation eased to 3.4% in July from 3.5% in June, while core inflation slowed to 2.5%, helping shape expectations around the Fed's next policy decisions.

US retail sales fell 0.6% in July, marking the largest monthly decline since May 2025, and prompting some economists to lower their expectations for third-quarter economic growth.

The Dow remains close to record levels but weaker retail sales, higher oil prices, and concerns about consumer sentiment could encourage investors to remain selective.