Finance

Economic reports revealed an unexpected decline in U.S. retail sales for July, sparking worries over the resilience of domestic consumer spending. While the cooling activity could pressure the Federal Reserve to keep interest rates steady, it simultaneously introduces risks of a slowing broader economy.

Technology and semiconductor shares led market losses at the end of the week as investors wrestled with high valuations in artificial intelligence sectors. Applied Materials fell despite an upbeat quarterly forecast, pulling down other industry giants like Broadcom and Intel.

U.S. government bond yields reversed an initial drop to finish higher on Friday, defying a run of softer consumer data. The upward move was accelerated by geopolitical developments involving Iran and comments regarding an ongoing naval blockade, with the 10-year Treasury note yield climbing to nearly 4.7%.