Finance

July U.S. retail sales unexpectedly declined by 0.6%, accompanied by a drop in the preliminary August consumer sentiment index from the University of Michigan. While the downcast figures indicate a slowing economy, traders view the weak demand as a compelling catalyst for the Federal Reserve to hold interest rates steady at its next meeting.

Semiconductor and AI-related stocks experienced a broad pullback, acting as a notable weight on the tech-heavy Nasdaq index. Applied Materials shares shed over 5% after its quarterly earnings beat and upbeat forecast failed to satisfy heightened investor expectations, causing subsequent drops in peers like Broadcom.

Reddit shares rallied more than 11% today following news that the social media platform will be added to the benchmark S&P 500 index next week. The company will fill the vacancy left by AvalonBay Communities, prompting anticipation of automated purchases by passive index-tracking funds.