Slowing retail sales increase the odds of the Fed’s cut

The bull isn’t resting. The S&P 500 continued its ascent, up by 0.3% despite a relatively quiet trading session. This is the sixth record closing in seven trading days. The Nasdaq inched higher by 0.1% to hit its seventh consecutive trading-day high. This marked Nasdaq’s longest winning streak since 2021.

💸Retail Sales Disappoint🚦

Data showed a 0.1% growth in May from April, which is below the 0.2% consensus. This is still an uptick from the 0.2% decline seen in April. The cooler number is welcoming to investors who are hoping for easing consumer spending, enough to tame inflation but keep the economy moving. This sent bond yields down and lifted equity.

📖Multiple Fed’s speech📤

During the trading session, numerous Fed officials discussed their thoughts on the economy and monetary policy. Such speeches tend to shift the market, but nothing new comes to excite it drastically. Most central bankers remain on the same page, reflecting a wait-and-see mentality as they remain data-dependent.

🎲Inflation Outlook and Progress🔒

There are indeed signs of progress made on the inflation front, echoed by Louis Fed President Alberto, but similarly, more data is needed to confirm the trend,

The market is closed for the Juneteenth holiday. US markets will resume trading on Thursday.

Have a splendid break.

Cheers.