US stocks slide after sharp slowdown in retail-sales rebound

Lucas Jackson/Reuters

  • US stocks fell on Friday after disappointing retail-sales data indicated that the economic rebound slowed in July.
  • Investors continue to expect further government stimulus even though talks over the next package are at a standstill.
  • The market will also be watching for news on trade talks, as senior US and Chinese officials are scheduled to meet on Saturday.
  • Read more on Business Insider.

US stocks fell on Friday after disappointing retail-sales data indicated that the rebound in retail sales slowed in July as new coronavirus cases ticked up.

Retail sales edged up by 1.2% in July, lower than economists’ estimates of a 2.3% increase and down from a revised 8.4% jump in June. The weaker-than-expected report suggested that the economic recovery from the pandemic recession lost steam as COVID-19 outbreaks curbed Americans’ shopping.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:

  • S&P 500: 3,368.79, down 0.1%
  • Dow Jones industrial average: 27,804.85, down 0.3% (92 points)
  • Nasdaq composite: 11,047.50, up 0.1%

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Investors continue to expect further stimulus from the government, even as Democrats and Republicans remain at a stalemate over the next package. A deal is unlikely to come soon, as talks have not resumed.

In addition, traders will be awaiting news on trade talks over the weekend; senior US and Chinese officials are scheduled to meet on Saturday.

China is expected to discuss the US’s recent crackdown on businesses such as TikTok and WeChat. The two sides are also expected to discuss compliance with the phase-one trade agreement signed in January.

Oil slipped, as a report from the International Energy Agency reduced forecasts for demand. West Texas Intermediate crude slipped as much as 1.1%, to $41.77 per barrel. Brent crude, the international benchmark, dropped 1.1%, to $44.48 per barrel, at intraday lows.

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