Week of 08/12-08/16 Market Turns Green, Best Week Of The Year

Stocks are set to close higher this Friday as the S&P 500, Nasdaq, and Dow Jones Industrial Average capture their best weekly performance of the year. Economic data was a huge factor in this week's market rally as the Consumer Price Index (CPI) and retail sales data both had better-than-expected results. The CPI came in lower than 3% for the first time in three years and showed prices slowed down more than expected in July. Retail sales data showed stronger-than-expected results, which quickly eased the inflation and recession worries that took the market in a roller coaster ride earlier this month. Walmart earnings results helped solidify the retail sales data by showing consistent performance over their second quarter. Analysts and economists are more confident than ever that the Federal Reserve will cut interest rates in September with a forecasted cut of 50 basis points. Lasty, gold prices jumped over the $2,500 mark for the first time. Gold investments have recently increased in 2024 as it is the ultimate hedge against inflationary and geopolitical risks.

How does monthly retail sales data affect the stock market?

Monthly retail sales data can have a significant impact on the stock market, as it provides insights into the health of the economy and consumer spending patterns. Positive retail sales data typically indicates a strong economy and can lead to increased investor confidence, which can boost stock prices. Conversely, weak retail sales data can lead to a decrease in investor confidence and a decline in stock prices.