Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending
Portfolio Pulse from Piero Cingari
Retail sales in March 2024 rose by 4% year-over-year and 0.7% month-over-month, surpassing expectations and indicating strong consumer spending despite inflation. Nonstore retailers and gas stations saw the largest increases, while sporting goods and clothing stores experienced declines. The S&P 500 futures rose 0.8% in premarket trading, and the Invesco DB USD Index Bullish Fund ETF (UUP) gained following the report, amidst rising Treasury yields.
April 15, 2024 | 12:42 pm
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POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) saw an increase following the March retail sales report, likely due to rising Treasury yields.
The positive retail sales report indicates strong consumer spending, which can lead to higher inflation expectations and thus higher Treasury yields. As UUP tracks the performance of the U.S. dollar against a basket of currencies, rising yields can strengthen the dollar, benefiting UUP.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80