The three major New York stock indexes started mixed as investors watched weak U.S. retail sales and tensions between the United States and Iran.
As of 9:40 a.m. on the 14th (local time) on the New York Stock Exchange, the Dow Jones Industrial Average fell 64.15 points, or 0.12%, to 53,775.84 from the prior session. The Standard & Poor's (S&P) 500 rose 3.27 points, or 0.04%, to 7,802.26, and the Nasdaq composite added 24.25 points, or 0.09%, to 26,827.28.
Market attention on the day focused on the U.S. July retail sales report. According to the Department of Commerce, July retail sales, seasonally adjusted, were $763.602 billion, down 0.6% from the previous month. The result missed the market forecast for a 0.1% increase by a wide margin.
With the consumer data coming in weaker than expected, expectations for a rate hike in September eased further, which provided a partly positive factor for equities.
According to CME FedWatch, the probability of a September rate hike by the Federal Reserve (Fed) reflected in the fed funds futures market fell to 30.6% after the retail sales release. It was down from 33.9% the previous day, which had reflected the slowdown in the July consumer price index (CPI) and producer price index (PPI).
However, gains in stocks were limited as tensions between the United States and Iran showed little sign of easing. The previous day, Abu Dhabi National Oil Company (ADNOC), the state oil company of the United Arab Emirates (UAE), said two ships were attacked while transiting the Strait of Hormuz.
U.S. Defense Secretary Pete Hegseth warned regarding the situation in Hormuz that "the U.S. Navy can maintain such a blockade indefinitely."
U.S. Treasury Secretary Scott Bessent also said, "Please pay attention as there will be additional announcements next week," and noted it combines "economic isolation the world has never seen and a blockade of the Strait of Hormuz that cuts off all goods going in and out of Iranian ports."
Elwin de Groot, head of macro strategy at Rabobank, said, "Investors may be becoming increasingly desensitized to geopolitical shocks, but Central Bank cannot ignore recent developments," adding, "While this week's inflation reports broadly matched expectations, they are unlikely to settle the debate within central banks."