Retail Sales Drop and Consumer Sentiment Hits Post-Election Low

The US stock market struggled to find direction on Friday after retail sales unexpectedly fell by 0.6% in July, missing consensus estimates for a 0.1% increase.

This marked the weakest reading since May 2025 and the first monthly decline since October 2025, with five of the 13 retail categories tracked by the government posting declines.

Non-store sales, which include e-commerce, fell by 2.2%, with Amazon (AMZN) among the retailers affected due to its decision to shift Prime Day from July to June this year.

The University of Michigan's preliminary Index of Consumer Sentiment also dropped to 51.0 in August from 55.2 in July, well below the 55.0 consensus estimate.