Stocks Surge on Lower Rate Hike Expectations Amid Weak Economic Reports
US stocks are gaining support after weak US economic reports curbed expectations of a September Fed rate hike. The odds of a rate increase have dropped to 29% from 35% on Thursday.
The S&P 500 Index is up +0.02%, the Dow Jones Industrial Average is down -0.08%, and the Nasdaq 100 Index is up +0.15%. September E-mini S&P futures are up +0.01%, and September E-mini Nasdaq futures are up +0.16%.
The weak US retail sales report released today, which fell by -0.6% month-over-month in July, was partly due to technical factors. However, the report suggested that US consumers are pulling back due to high prices, increased gasoline costs, and a lack of confidence in their finances.
Additionally, the University of Michigan's preliminary August consumer sentiment index fell by -4.2 points to 51.0, weaker than market expectations for only a small decline.