The New York Stock Exchange opened lower before rebounding, showing a confused trend. Although the U.S. retail sales index was announced lower than market expectations, it is interpreted that investor sentiment has limitedly recovered as the two-month consecutive decline in consumption has been avoided.
According to Bloomberg on the 17th (local time), the Dow Jones Industrial Average rose by 178.33 points (0.43%) to 41,666.52 as of 10 minutes past the hour from the previous trading day. At the same time, the Standard & Poor's (S&P) 500 index increased by 25.15 points (2.13%) to 5,664.09, while the tech-focused Nasdaq index recorded a rise of 48.50 points (0.27%) to 17,802.59. The three major indices initially showed a downward trend but quickly rebounded slightly.
The chaotic flow of the New York Stock Exchange that day is interpreted to have been influenced by the previously announced U.S. retail sales growth rate. The U.S. Department of Commerce announced that last month's retail sales were totaled at $72.27 billion (approximately 1.046 trillion won), showing a 0.2% increase compared to the previous month. This figure is below the 0.6% increase initially forecasted by experts in the United States.
However, the market focused on the fact that the consumption decline phenomenon has vanished after one month, providing some relief. In January, U.S. retail sales declined by 1.2% compared to the previous month, shocking the market significantly. Retail sales fluctuations are a representative indicator of the U.S. economy. A decrease in retail sales growth is interpreted as a sign of economic slowdown, while a net decrease in retail sales is seen as a sign of recession.
Jennifer Timerman, a researcher at Wells Fargo Research Institute, noted, "The February retail sales results suggest a limited and gradual economic slowdown rather than a sign of recession."
However, as the U.S. government has recently mentioned the possibility of recession, it seems likely that the recovery of investor sentiment will be hindered. Scott Best, U.S. Secretary of the Treasury, said, "There is no guarantee that a recession will not occur during Donald Trump's presidency." He added, "This is merely a transition period, and it will not escalate into a crisis."