Finance

Recent economic data revealed that U.S. retail sales experienced a contraction in July, shifting by 0.6% from the prior month. This unexpected dip, alongside weakening consumer confidence, introduced fresh concerns over a potential economic slowdown. While a cooler consumer landscape could reinforce a decision by the Federal Reserve to pause interest rate hikes, it also highlighted growing economic vulnerabilities amidst persistent core inflation.

Despite reporting a quarterly earnings beat and strong forward projections driven by artificial intelligence demand, chip equipment maker Applied Materials saw its shares drop more than 5%. Industry giants Broadcom and Intel also suffered notable single-day losses. Analysts attribute the sector-wide decline to profit-taking and intensely elevated valuations, signaling that investors are becoming much more demanding regarding the immediate sustainability of tech revenue growth.

Shares of the social media platform Reddit surged roughly 13% following the official announcement that the stock will be added to the S&P 500 index next week. The inclusion is highly favored by investors because benchmark-tracking funds and institutional managers are mechanically required to purchase shares to match index weightings. The boost provided a sharp bright spot during an otherwise muted session for the broader technology sector.