US Stock Market Edges Back From Record High Amid Weak Retail Sales

The US stock market edged back from its record high on Friday after a surprisingly weak update on retail sales. The S&P 500 slipped 0.2% from its all-time high, while the Dow Jones Industrial Average dipped 107 points and the Nasdaq composite sank 0.3%. This decline came despite oil prices rising 1.7%, with Brent crude hitting $88.52 per barrel.

The weak retail sales data raised concerns about a slowing economy when inflation is still high. However, some analysts believe this could actually help keep interest rates low, which would be beneficial to Wall Street. The Federal Reserve may hold off on hikes to interest rates if inflation continues to decelerate.

A preliminary survey by the University of Michigan suggested consumer sentiment is weakening more than expected, particularly among older and lower-income groups who can be hurt most by inflation. Jennifer Timmerman, senior investment strategy analyst at Wells Fargo Investment Institute, cautioned against overreacting to the weak data on retail sales, suggesting it could simply be a snap back after unusual factors boosted earlier months.

Reddit's stock jumped 12.6% after learning it would join the S&P 500 index on Tuesday, while Applied Materials fell 5.1% despite reporting stronger profit and revenue than expected.