Finance

An unexpected decline of 0.6% in July retail sales, alongside mild inflation data, has led investors to significantly lower the odds of an imminent interest rate hike by the Federal Reserve. Financial markets are now pricing in a reduced probability for a policy adjustment in September. Investors are shifting focus toward upcoming earnings reports from major retail companies, including Walmart and Target, for clearer insights into consumer health.

Strong quarterly results continue to bolster domestic equities, with the S&P 500 trading just below its recent all-time high. With the vast majority of companies having reported, year-over-year profit growth has proven exceptionally resilient. Major institutional strategists have upgraded their long-term targets for the broader market, pointing to growing cloud revenue and infrastructure monetization that is beginning to outpace massive corporate capital expenditures.

In digital asset markets, Bitcoin remained stable, trading near the $63,400 threshold as it encountered technical resistance below its recent highs. The cryptocurrency sector experienced mixed performance overall, with specific decentralized networks outperforming large-cap tokens. Cautious sentiment among institutional investors was underscored by net outflows totaling roughly $390 million from domestic spot Bitcoin ETFs during the prior week.