Investors went on the defensive in fear that the Federal Reserve might not move too fast on cutting borrowing costs.
The S&P 500 (SPX) erased 0.6% on Wednesday after stronger than expected economic data triggered a rush to safety across stocks. Retail sales, a closely followed indicator for the health of the US consumer, rose a seasonally adjusted 0.6% in December from a month earlier.
Stronger spending could dent projections for how quickly the Federal Reserve might start trimming borrowing costs. The fresh print adds to a string of upbeat data following December’s above-estimate nonfarm payrolls and inflation data. Next up, initial jobless claims will be released later today.
Futures contracts on all three major stock averages dipped slightly in the red ahead of Thursday’s opening bell. The Dow Jones Industrial Average suffered its third day of declines yesterday and is down 1.1% on the year. The tech-heavy Nasdaq Composite is lower by 1%.