US Economic Data Sparks Global Stock Rally Amid Rate Hike Fears
Global stocks rose across the board on Monday after data from the US hinted at a potential delay in interest rate hikes by the Federal Reserve.
The release of closely watched reports pointing to a softening labor market and easing inflation last week had already boosted equities, with the S&P 500 and Nasdaq setting new records.
However, fresh data on Friday raised concerns about the health of the US economy, with retail sales falling 0.6% in July, their worst performance in over a year, and consumer sentiment plummeting due to households cutting back on spending amid inflation fears.
Fawad Razaqzada at Forex.com noted that 'taken together, the data suggest that US economic momentum may be losing some steam', strengthening expectations that the Federal Reserve could leave rates unchanged in September.