Stocks stop rallying after signs of consumer slowdown – US Market Wrap

Stocks slid from a record high after the economy’s major engine showed signs of slowing, overshadowing hopes that the Federal Reserve will keep interest rates unchanged in September.
While falls in consumer confidence and retail sales alleviated concerns about an impending rate hike, they do not speak well for corporate America. The S&P 500 fell 0.2%. However, it managed to post a third consecutive week of gains, the longest winning streak since May. Despite the negative report, bonds fell, and oil surged when the US vowed to implement economic sanctions against Iran.
The University of Michigan’s preliminary August sentiment index fell to 51 in August. Retail sales fell sharply in July, the most in almost a year.
Fed’s Goolsbee said he is encouraged by the recent reduction in inflation, but he wants to see more of the same in the coming months to ensure it returns to the central bank’s 2% target.