Wall Street’s main indexes opened lower on Tuesday, after data showed a larger-than-expected increase in US retail sales, stoking fears that the US Federal Reserve will keep interest rates high for a longer period.
The Commerce Department said on Tuesday that retail sales increased 0.7 percent last month.
The rate of increase in sales in June was raised to 0.3 percent instead of 0.2 percent in the previous report.
Economists polled by Reuters had expected retail sales to rise 0.4 percent.
On the other hand, Fitch Ratings warned that US banks, including JPMorgan Chase, may be downgraded if the agency lowers its assessment of the operating environment in the sector.
Last June, Fitch Ratings downgraded the US banking sector’s “operating environment” rating to AA- from AA, citing pressure on the country’s credit rating, gaps in the regulatory framework, and uncertainty about the future path of higher interest rates.
A one-time downgrade to A+ from AA-, the agency said, would force Fitch to reassess the ratings of each of the more than 70 US banks it covers.
Market movements
The Dow Jones Industrial Average fell 210.88 points, or 0.60 percent, to 35,096.75 points, by 14:00 GMT.
The Standard & Poor’s 500 index fell 31.09 points, or 0.67 percent, to 4,458.63 points, while the Nasdaq Composite Index fell 89.88 points, or 0.64 percent, to 13,699.68 points.
2023-08-15 14:17:13
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