US Stocks Hold Near Record Highs Amid Economic Data Worries
US stock markets held near record highs on Friday despite the latest economic data pointing to a potential slowdown in consumer spending. The S&P 500 slipped 0.2% from its all-time high set the day before, while the Dow Jones Industrial Average fell 113 points or 0.2%. Meanwhile, the Nasdaq composite dropped 0.5%.
The data showed that retail sales unexpectedly declined last month, which could ease pressure on inflation but also raise concerns about a slowing economy. The Federal Reserve has been grappling with how to balance high inflation and a potential economic downturn.
Jennifer Timmerman, senior investment strategy analyst at Wells Fargo Investment Institute, cautioned against overreacting to the weak data, suggesting that it could be a one-time adjustment after unusually strong retail sales in previous months. However, sentiment among US consumers appears to be weakening, with a preliminary survey by the University of Michigan showing drops across various groups.