US stock market today: Wall Street benchmarks were trading close to their record highs on Friday despite another unexpectedly weak economic indicator, this time showing softer retail spending.The S&P 500 inched up 0.1%, following the record close it achieved a day earlier. As of 9:35 a.m. Eastern time, the Dow Jones Industrial Average had slipped 27 points, or 0.1%, while the Nasdaq Composite was trading 0.1% higher.The bond market was largely steady after government data showed that consumer spending at US retailers declined from the previous month. The reading caught economists off guard, as they had expected retail sales to post another monthly increase, according to an AP report.
Stocks in focus
Among individual stocks on Wall Street, Reddit surged 14.7% after it was announced that the company would be added to the S&P 500 index on Tuesday. Inclusion in the benchmark typically attracts buying from index funds and institutional investors that either replicate the index or use it as a performance benchmark.Applied Materials declined 4% despite reporting quarterly revenue and profit that exceeded analysts’ expectations. The semiconductor equipment maker said strong global demand for artificial intelligence technologies helped it deliver another record quarter. CEO Gary Dickerson credited the growing appetite for AI as a key driver of the company’s performance.However, the stock came under pressure after having more than doubled in value this year, leaving investor expectations exceptionally high.The broader AI sector has remained volatile in recent months amid concerns that share prices had risen too quickly on enthusiasm surrounding artificial intelligence and that the rapid pace of revenue growth may not be sustainable.
What softer retail sales mean
From the market’s perspective, weaker consumer spending could help ease inflationary pressures. Although inflation remains well above desired levels, data released earlier in the week indicated that the pace of price increases has begun to moderate.If that trend continues, the Federal Reserve may choose to delay raising interest rates. While higher borrowing costs are an effective tool to curb inflation, they also restrain economic activity by making loans more expensive for households and businesses.However, the softer retail sales figures, coupled with last week’s unexpectedly weak employment report, have also fuelled fears that the US economy may be losing momentum.Even so, some market participants urged caution in interpreting the retail sales data. Short-term Treasury yields edged lower after the retail sales report, indicating that traders now see a reduced likelihood of the Federal Reserve raising interest rates at its September policy meeting.The benchmark 10-year US Treasury yield, which is more sensitive to long-term expectations for inflation and economic growth, edged higher to 4.65% from 4.63% at Thursday’s close.
Oil prices stable
In the commodities market, oil prices were relatively stable after experiencing sharp swings in recent weeks, as markets continued to react to changing expectations over when the conflict involving Iran might ease sufficiently to allow crude shipments from the Middle East to resume normal global flows.Brent crude slipped 0.2% to $86.92 a barrel.Overseas equity markets ended with mixed performances across Europe and Asia.In the UK, London’s FTSE 100 eased 0.1% after Nigel Farage won back the parliamentary seat he had vacated a month earlier, defeating the novelty candidate Count Binface, who campaigned wearing a trash can.South Korea’s Kospi was once again among the world’s best-performing major indices, advancing 2.4% for its third consecutive session with gains of at least that magnitude. The Seoul market has been at the centre of the global volatility in AI-related stocks because of the dominant influence of technology giants Samsung Electronics and SK Hynix.
