US markets slightly lower as retail stocks soar
Markets in US closed slightly lower on Thursday after companies in the retail sector rebounded after earnings weren’t as bad as feared.
The Dow Jones industrial average closed just 28.7 points lower at 21,783.4. The S&P 500 fell 0.2% to 2,438.97, with consumer staples leading decliners. The Nasdaq composite pulled back 0.1% to close at 6,271.33.
The SPDR S&P Retail exchange-traded fund (XRT) spiked 0.9% higher, with shares of Abercrombie & Fitch, PVH Corp., Williams-Sonoma and Perry Ellis all closing higher. Investors set their sights on Jackson Hole, Wyoming as leaders of global central banks gathered for the annual Jackson Hole economic symposium.
As per a government official, US economy is strong enough to handle more rate hikes, despite recent readings of weak inflation. Market expectations for a rate hike in December are just 37.6%, according to the CME Group’s FedWatch tool.
The yield on the 10-year Treasury note ticking higher to 2.18%. Bond yields move inversely to prices. The uptick in yields follow months of declines, with the yield on the US 10-year note down about 30 basis points since January.