US Stocks Slip as Retail Sales Weaken and Oil Prices Rise
US stocks slipped on Friday after a weak retail sales report added to concerns about the economy. The S&P 500 fell 0.2 per cent, while the Dow Jones Industrial Average dropped 107 points, or 0.2 per cent, and the Nasdaq composite lost 0.3 per cent.
The pullback came despite softer demand that could help ease inflation pressures and keep interest rates lower for longer. Economists had expected spending to grow again, but US shoppers spent less at retailers last month than in the previous month.
Markets also turned lower after oil prices rose, adding another layer of uncertainty for investors. The price of Brent crude climbed 1.7 per cent to USD 88.52 a barrel, amid continued uncertainty over when the war with Iran will allow oil tankers to move freely out of the Persian Gulf again.
While weaker spending could help reduce pressure on inflation, it has raised the risk of an economic slowdown. The Federal Reserve faces a difficult decision in tackling both weak growth and high inflation together.