U.S. Stocks Hold Steady as Retail Sales Jump and Fed Meeting Looms
U.S. stocks traded mostly flat on Tuesday, staying close to record highs as investors digested strong retail sales data and awaited the Federal Reserve’s policy decision.
At 09:40 ET (13:40 GMT), the Dow Jones Industrial Average fell 60 points, or 0.1%. The S&P 500 traded flat, while the NASDAQ Composite edged just one point higher.
Retail Sales Beat Expectations
On Monday, both the S&P 500 and NASDAQ closed at record highs, with the S&P finishing above 6,600 for the first time. Much of the rally has been driven by expectations of Fed rate cuts.
Investors widely expect the Federal Open Market Committee (FOMC) to cut rates by 25 basis points on Wednesday. Markets will also watch closely for hints on whether this marks the beginning of a longer easing cycle.
Retail sales rose 0.6% month-on-month in August, matching July’s revised growth and beating forecasts of just 0.2%, according to the Commerce Department. Growth was boosted by e-commerce demand, although concerns remain about a weakening labor market heading into the third quarter.
U.S.-China Trade Talks and TikTok Deal
Market sentiment was also lifted by renewed optimism over U.S.-China trade negotiations in Madrid. President Donald Trump said the talks went “VERY WELL” and hinted at a deal to secure the future of TikTok in the U.S.
Treasury Secretary Scott Bessent confirmed a framework agreement had been reached for TikTok’s U.S. ownership, with final details expected after Trump’s upcoming call with President Xi Jinping.
Corporate News
- Ford (NYSE:F) said it will cut up to 1,000 jobs in Cologne, Germany, due to weak demand for electric vehicles.
- Google (NASDAQ:GOOGL) announced £5 billion ($6.8 billion) investment in the U.K., ahead of Trump’s state visit.
- Dave & Buster’s (NASDAQ:PLAY) stock dropped after disappointing quarterly earnings.
- Rocket Lab (NASDAQ:RKLB) fell after announcing a stock purchase agreement worth up to $750 million.
- Oscar Health (NYSE:OSCR) declined after unveiling a $350 million convertible notes offering.
- Oracle (NYSE:ORCL) gained after reports it could be part of the consortium ensuring TikTok’s continued U.S. operations.
Oil Prices Rise on Russian Supply Risks
Crude oil prices rose on concerns about Russian supply disruptions. At 09:40 ET, Brent futures climbed 1% to $68.14, while U.S. West Texas Intermediate rose 1.2% to $64.44.
Both benchmarks gained more than 1% last week as Ukraine escalated drone strikes on Russian energy facilities, including the Primorsk export terminal and the Kirishinefteorgsintez refinery. Analysts warn the attacks could disrupt supplies to India and China, two of Moscow’s top markets.
