Finance

Data from the U.S. Census Bureau revealed that retail sales contracted by 0.6% in July, contrasting with economist expectations for a modest expansion. This drop, combined with a lower-than-expected preliminary reading for August consumer sentiment from the University of Michigan, sparked fresh economic growth concerns. Analysts note that while weaker consumer data may reinforce the case for the Federal Reserve to pause interest rate hikes, it highlights a potential slowdown in the broader economy.

The technology sector faced selling pressure at the end of the week, driven primarily by a pullback in major semiconductor and hardware firms. Applied Materials fell over 5% after its quarterly guidance failed to satisfy lofty market expectations, which subsequently dragged down peers like Broadcom and Intel. This profit-taking comes amid heightened investor nervousness regarding the elevated valuations of artificial intelligence data center infrastructure providers.

Crude oil prices advanced by more than 1%, continuing a recent upward trend that has pressured risk assets and impacted bond yields. The price increase followed reports of a tanker coming under attack while attempting to depart the Persian Gulf, raising supply chain anxieties. Higher energy costs also pushed the 10-year U.S. Treasury yield upward, closing the week out at 4.69%.