Finance

Fresh economic data revealed that U.S. retail sales contracted by 0.6% in July, a significant reversal from the expansion seen in the previous month. Concurrently, consumer sentiment indices experienced a decline in early August. While the softer consumer activity increases the likelihood of the Federal Reserve pausing rate hikes, it has simultaneously introduced investor concern regarding an economic growth slowdown.

The technology sector experienced a broad retreat, notably led by chipmakers and equipment manufacturers due to highly inflated investor expectations. Applied Materials dropped over 5% despite surpassing its quarterly earnings estimates, while Broadcom shares fell roughly 6% following analytical skepticism over a massive proposed debt financing structure. Profit-taking pressures also hit the wider semiconductor sector after several sessions of aggressive growth.

Bucking the broader negative trend in equities on Friday, shares of Reddit jumped by 13%. The substantial gains followed an official announcement that the social media platform is scheduled to join the benchmark S&P 500 index during the upcoming week.