Finance

The latest government reports indicated that U.S. retail sales experienced a surprise contraction in July, marking the first monthly decline in nearly a year. Complemented by deteriorating consumer confidence figures in August, the weak statistics have led multiple economists to reduce their projections for third-quarter economic growth. However, Wall Street also anticipates that the slowing economic activity could deter the Federal Reserve from raising interest rates.

Tech shares are expected to lead early market activity following notable financial updates from key sector participants. Generative AI startup Anthropic reportedly disclosed a massive 14-fold surge in preliminary second-quarter revenue compared to last year. Market strategists emphasize that heavy capital expenditures in artificial intelligence infrastructure continue to serve as a primary tailwind for corporate profit growth.

Global energy markets continue to navigate supply chain disruptions linked to ongoing tensions in the Middle East, particularly around the Strait of Hormuz. International benchmark Brent crude remains trading at elevated levels near $88 a barrel. The risk of supply instability has kept energy and basic materials among the top-performing market sectors, even as broader equity indexes consolidated.