On Friday, Wall Street’s main indexes closed with mixed results as investors reacted to an unexpected decline in January retail sales, which fell by 0.9% to $723.9 billion, surpassing the anticipated 0.2% decrease. This downturn, following four consecutive months of growth, has been attributed to a potential “holiday hangover,” with consumers pulling back after significant holiday spending.
The Dow Jones Industrial Average experienced a slight decline of 0.1%, while the S&P 500 edged up by 0.1%, and the Nasdaq Composite gained 0.2%. Notable stock movements included GameStop surging 9% amid discussions of potential cryptocurrency investments, and Roku shares rising 19% due to a narrower-than-expected loss and strong performance indicators.
In the bond market, U.S. Treasury yields fell to one-week lows as the retail sales data raised concerns about economic strength and led economists to adjust GDP growth forecasts. The unexpected decline in consumer spending has also fueled expectations of possible Federal Reserve rate cuts.
