Higher-than-anticipated retail inflation in April weighed on equities, overshadowing geopolitical developments.
Wall Street closed mostly lower Tuesday after April’s retail inflation report exceeded expectations, dampening hopes for near-term rate cuts. The Dow eked out a 0.1% gain, while the S&P 500 and Nasdaq retreated, reflecting investor concerns over persistent price pressures.
Analysts had anticipated a cooler inflation print, following March’s mixed data. The latest figures suggest inflation remains sticky, complicating the Federal Reserve’s policy path. Geopolitical tensions, including stalled U.S.-Iran ceasefire talks, added to market unease.
Equities showed limited reaction to the data, with major indices paring earlier losses. Treasury yields ticked higher, reflecting revised rate-cut expectations.