Summary
- U.S. stocks in New York closed broadly lower as concerns over slowing consumer spending and a 0.6% drop in retail sales pushed the major indexes down.
- International oil prices and U.S. Treasury yields both rose, while the dollar index fell 0.2%, showing a divergence across asset markets.
- Sandisk surged 7.39% on the back of its shareholder return policy and a JPMorgan rating upgrade, while AI-related stocks and the Philadelphia Semiconductor Index traded lower.
Forecast Trend Report by Period
U.S. stocks closed lower on Aug. 14 as mounting concerns over a slowdown in consumer spending weighed on sentiment.
The Dow Jones Industrial Average fell 107.58 points, or 0.2%, to 53,732.41 on the New York Stock Exchange. The S&P 500 dropped 13.23 points, or 0.17%, to 7,785.76, while the tech-heavy Nasdaq Composite lost 73.86 points, or 0.28%, to 26,729.16.
Economic data released that day added to worries about consumer demand.
U.S. retail sales fell 0.6% in July from the previous month, the biggest decline in one year and two months since a 1.1% drop in May 2025. The figure was far weaker than economists' forecast for a 0.1% increase.
Consumer sentiment, which had improved for two straight months, also fell for the first time in three months.
Oil prices rose again as geopolitical risks came back into focus after a tanker attack in the Strait of Hormuz and renewed tensions between the U.S. and Iran.
Brent crude for October settlement, the global benchmark, rose 1.67% to close at $88.52 on ICE Futures Europe in London. West Texas Intermediate for September delivery gained 1.45% to settle at $82.40 a barrel on the New York Mercantile Exchange.
U.S. Treasury yields also moved higher. The 10-year yield rose 5 basis points to 4.69%, while the 30-year yield climbed 6 basis points to 5.27%. The dollar index, which tracks the greenback against six major currencies, fell 0.2%.
Even so, expectations for another rate increase changed little.
CME FedWatch showed the federal funds futures market raised the probability that the Federal Reserve will hold rates steady at next month's Federal Open Market Committee meeting to 67.6% from 66.1% a day earlier. The odds of a rate increase slipped to 32.4% from 33.9%.
Most technology stocks traded lower.
Broadcom and Intel fell 5.94% and 1.97%, respectively, as investors took profits in artificial intelligence-related shares. Applied Materials also dropped 5.12% despite posting strong earnings that day.
The Philadelphia Semiconductor Index slipped 0.31%.
Sandisk, which surged more than 13% a day earlier after announcing a shareholder return policy, rose another 7.39% after JPMorgan upgraded the stock. SK Hynix's American depositary receipt gained 0.4%.
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀