(Bloomberg) — Wall Street traders fearing a bigger pullback in consumer spending amid all the tariff drama got a degree of relief from mixed retail sales, with stocks up and short-term bonds down.
Equities extended their rebound after one of the S&P 500’s sharpest-ever corrections, which was partly triggered by concerns over the economic impacts of a trade war. Just a few days ahead of the Federal Reserve decision, the latest economic data did nothing to alter bets on the short-term path of monetary policy. Money markets priced in expectations that the Fed is unlikely to cut rates before June or July.
US retail sales rose by less than forecast in February and the prior month was revised lower However, the so-called control-group sales — which feed into the government’s calculation of goods spending for gross domestic product — increased 1% last month, reversing the previous drop.
“This morning’s February retail sales report offers evidence of a limited, modest economic slowdown, rather than signaling a gathering recession,” said Jennifer Timmerman at Wells Fargo Investment Institute.
A sense of wait-and-see may emerge from policymakers this week, in their first assessment of how President Donald Trump’s trade policies are impacting the economy. With Fed officials expected to hold rates steady on Wednesday, the market will focus on officials’ updated economic projections and Chair Jerome Powell’s press conference for clues on the path ahead.
Key events this week:
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Germany ZEW survey expectations, Tuesday
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US housing starts, import price index, industrial production, Tuesday
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Bank of Japan rate decision, Wednesday
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Eurozone CPI, Wednesday
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Federal Reserve rate decision, Wednesday
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China loan prime rates, Thursday
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Bank of England rate decision, Thursday
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US Philadelphia Fed factory index, jobless claims, existing home sales, Thursday
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Eurozone consumer confidence, Friday
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Fed’s John Williams speaks, Friday
Some of the main moves in markets:
Stocks
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The S&P 500 rose 0.5% as of 9:45 a.m. New York time
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The Nasdaq 100 rose 0.5%
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The Dow Jones Industrial Average rose 0.6%
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The Stoxx Europe 600 rose 0.8%
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The MSCI World Index rose 0.7%
Currencies
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro rose 0.2% to $1.0901
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The British pound rose 0.3% to $1.2973
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The Japanese yen fell 0.3% to 149.03 per dollar
Cryptocurrencies
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Bitcoin rose 0.2% to $83,403.01
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Ether rose 0.6% to $1,906.66
Bonds
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The yield on 10-year Treasuries was little changed at 4.31%
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Germany’s 10-year yield declined five basis points to 2.82%
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Britain’s 10-year yield was little changed at 4.66%
Commodities
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West Texas Intermediate crude rose 1.1% to $67.91 a barrel
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Spot gold rose 0.2% to $2,989.57 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sujata Rao, John Viljoen and Catherine Bosley.
©2025 Bloomberg L.P.
Shared by Golden State Mint on GoldenStateMint.com
