Markets· August 17, 2026 at 10:35 a.m.
U.S. Retail Sales Drop, Fed Rate Hike Expectations Ease
Key takeaways
- U.S. retail sales dropped in July
- Fed rate hike expectations for September have eased
- Oil prices and consumer confidence surveys influenced the retail sales drop
A drop in U.S. retail sales in July, teeing up second-quarter results from Home Depot, Target, and Walmart later in the week, has led to a decrease in expectations for Federal Reserve rate hikes in September. The drop was attributed to a retreat in oil prices and a quirk from Amazon's 'Prime Day' discount day being moved to June this year. However, the reheating of oil prices in recent weeks amid the Iran war standoff might shift the picture before the Fed meets next month.
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