Investors are digesting the implications of strong US retail sales data, which could complicate the Federal Reserve's plans for further rate cuts into 2025. The robust retail performance, particularly in car purchases and online shopping, indicates a resilient US economy. This resilience may lead the Fed to reconsider the pace of its monetary easing, especially with the potential inflationary impact of proposed import tariffs by the incoming administration. The broader market sentiment remains cautious as traders weigh these economic indicators against global monetary policy shifts.
The Invesco S&P 500 Equal Weight ETF (RSP) closed at $180.13, down 0.79% from its previous close of $181.56, as of 16:20 on Tuesday, December 17.