Investors are grappling with the implications of strong US retail sales data, which could potentially disrupt the Federal Reserve's anticipated rate cut trajectory into 2025. The robust retail performance, buoyed by increased car sales and strong online shopping activity, signals a resilient US economy. This resilience, however, may lead the Fed to reassess its monetary easing pace, especially in light of proposed inflationary import tariffs by the incoming administration, which could influence consumer prices and inflation expectations. The broader market sentiment remains cautious as traders evaluate these economic indicators amidst global monetary policy shifts.
The iShares Core S&P 500 ETF (IVV) experienced a decline, closing at $605.04, down 0.44% from its previous close of $607.70, and further slipping to $604.78 as of 16:20 on Tuesday, December 17.