Unemployment Claims Exceed Expectations, Yet Robust Retail Sales Indicate Resilient Consumer Demand
Portfolio Pulse from Piero Cingari
Unemployment claims in the US exceeded expectations, rising to 262,000, while retail sales showed resilience with a 0.3% increase in May. Market-implied probabilities for a Fed rate hike in July rose from 72% to 74%.
June 15, 2023 | 1:03 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
S&P 500 futures fell 0.6% before Wall Street's opening bell, as unemployment claims exceeded expectations and retail sales showed resilience.
The rise in unemployment claims and the resilience in retail sales indicate a mixed economic outlook, which could lead to increased market volatility and negatively impact the S&P 500 index, which is closely tracked by the SPDR S&P 500 ETF Trust (SPY).
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The US dollar index, tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), fell 0.1% due to a fresh rate hike by the European Central Bank.
The European Central Bank's rate hike has led to a decline in the US dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (UUP). This decline indicates a negative short-term impact on UUP as investors may shift their focus to other currencies.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80