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, particularly in car sales and online shopping, underscores a resilient US economy. However, this economic strength may lead the Fed to reassess its monetary easing pace, especially in light of proposed inflationary import tariffs by the incoming administration. These factors are contributing to a cautious market sentiment as traders evaluate the economic indicators against global monetary policy shifts.
The Vanguard S&P 500 ETF (VOO) experienced a decline, closing at $555.45, down 0.42% from the previous close, and further slipping to $555.20, marking a 0.46% decrease as of 16:20 on Tuesday, December 17.