Retail Sales Slump – US Market Wrap
The bond market ended the week with solid gains as a soft reading on retail sales revived bets on Federal Reserve rate cuts.
A rally in Treasuries pushed the 10-year yield below 4.5%, with the bond notching its fifth straight week of gains, the longest run since July 2021. Money markets are back to fully pricing in a first Fed reduction by September. The S&P 500 hovered near its all-time highs. The dollar hit a fresh low for 2025.
US retail sales slumped in January by the most in nearly two years, indicating an abrupt pullback by consumers after a spending spree in the closing months of 2024. The value of retail purchases, not adjusted for inflation, decreased 0.9% after an upwardly revised 0.7% gain in December.
The S&P 500 was little changed. The Nasdaq 100 added 0.4%. The Dow Jones Industrial Average fell 0.4%. US markets will be closed Monday for Presidents’ Day. Meta rose for a 20th consecutive session. Dell jumped on news it’s near an over $5 billion server deal for Elon Musk’s xAI. Intel fell Friday, but closed with its best week since 2000. The yield on 10-year Treasuries declined five basis points to 4.48%.
