US Stock Market Wobbles as Retail Sales and Inflation Data Take Center Stage
US stocks experienced fluctuations today amid a focus on retail sales and inflation data. Futures for the Dow Jones Industrial Average rose slightly by 0.1%, while S&P 500 futures edged down by 0.1%, and Nasdaq futures dropped 0.2%. The market showed signs of a tech-led rebound, with the Nasdaq posting its best day since May, driven by gains in Nvidia, Tesla, and Google. However, concerns remain over high valuations in AI and growth stocks, with Nvidia’s stock falling after reports of Meta’s talks to use Google’s AI chips, challenging Nvidia's dominance. Economic data released showed US retail sales increased by only 0.2% in September, below the expected 0.4%, marking a slowdown in consumer spending. Wholesale inflation also rose, with producer prices up 0.3% month-over-month and 2.7% year-over-year. Meanwhile, the market is pricing in an over 80% probability of a December interest rate cut by the Federal Reserve, supported by comments from Fed officials. In corporate earnings, several retailers reported strong results: Best Buy beat forecasts and raised its outlook, while Kohl’s and Abercrombie & Fitch also exceeded expectations, boosting their stock prices. Alibaba’s revenue beat estimates amid growth in its cloud division and investments in delivery services. Meanwhile, Bitcoin faces challenges, including large outflows from ETFs, slowing stablecoin activity, and long-term holders selling, contributing to its worst month since June 2022. Overall, markets remain cautious as investors weigh economic indicators, corporate earnings, and geopolitical developments, with the holiday-shortened week adding to the volatility.
Trend: dow jones