Finance

U.S. retail sales for July contracted by 0.6%, widely missing economist expectations of a 0.1% increase. While the drop points to broader economic softening, the underperformance caused Treasury yields to fall. Investors hope the muted spending figures will deter the Federal Reserve from pursuing further interest rate hikes next month.

Shares of Applied Materials tumbled over 5% following its latest quarterly financial update. Although the semiconductor equipment manufacturing firm beat top and bottom-line analyst predictions, high built-in market expectations triggered a selloff. Other chipmakers like Broadcom and Intel followed down, dropping roughly 6% and 2% respectively.

Digital assets pulled back as Bitcoin slipped under $63,000, while Ethereum fell below the $1,880 mark. Crypto markets faced pressure from soft macroeconomic indicators and political gridlock, as the U.S. Senate went to recess without passing the Clarity Act. Sentiment dimmed further after the Securities and Exchange Commission abruptly canceled a key meeting focused on capital-raising rules for crypto startups.