The US stock market dropped on Wednesday
Yesterday has been a negative day for Wall Street.
All three major indexes have closed in a loss.
The S&P 500 closed at -1.56%, the Nasdaq ended the trading session at -1.24% and the Dow Jones closed at -1.81%.
The negative movement has been driven by the latest economic data and the St. Louis Fed President James Bullard's comment who said that the interest rate should raise above 5% "as quickly as we can".
Lower retail sales
On Wednesday, the Department of Commerce released the latest US retail data.
The report has shown that in December retail sales fell 1.1% compared to the previous month.
Analysts have forecasted a drop of 0.8%, so retail sales have gone down more than expected.
Consumers have spent less on vehicles, gasoline and furniture.
Weak economic data are good news for the Fed
The Federal Reserve is trying to fight high inflation by implementing a restrictive monetary policy.
So far, there has been a series of interest rate hikes that have started to slow down inflation.
Yesterday's retail sales data is the reflection of a fewer consumer demand, which is a sign that the Federal Reserve’s tightening actions are working fine to reduce inflation.
Today's data to watch
US initial jobless claims, or the week ending 14 January, are going to be released today at 1.30 pm GMT.
Markets can be volatile.
Sentiment Indicator - Fear & Greed Index
The market sentiment is at 57 in the "Greed" mode.
The investor sentiment has changed from Fear to Greed in one month.
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Weak economic data are good news for the Fed
Published 19/01/2023, 12:06
Weak economic data are good news for the Fed
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