July's retail sales in the US grew by 0.7% month-on-month, the highest since January 2023, and 3.2% annually, beating expectations. Economists attribute this growth to strong consumer spending despite challenges like high temperatures and Canadian wildfire smoke. Amazon Prime Day also contributed to the surge in electronic shopping. However, the strong retail sales data led to a rise in the cost of capital, potentially challenging small businesses and consumers, and putting pressure on equity markets.