US shares rise as investors await latest insights on American consumers
US shares rise as investors await latest insights on American consumers

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Wall Street stocks rose on Monday as investors prepared for this week’s U.S. retail industry data and earnings reports, looking to gauge U.S. consumer sentiment.

The benchmark S&P 500 ended 0.6 percent higher, led by technology stocks, while the tech-heavy Nasdaq Composite rose 1.1 percent.

Shares of chipmaker Nvidia led the gains in the S&P 500, rising 7.1%, recovering from last week’s biggest weekly loss in 11 months.

Shares of regional banks tumbled, among the worst performers on the S&P 500, after U.S. banking regulators said they wanted to require large regional lenders to produce “living wills” to make it easier to shut down troubled institutions .

Traders this week will assess Tuesday’s U.S. retail sales data, as well as earnings reports from consumer goods giants Walmart, Target and Home Depot, for a gauge of the health of the U.S. consumer more than a year after borrowing costs began to climb.

Karl Schamotta, chief market strategist at Corpay, said of the upcoming retail figures: “If wealthy households splurge in the summer, there could be material growth in food services and travel, offsetting the growing pinch. weakness in low-income groups.”

The Federal Reserve on Wednesday will release the minutes of its July meeting, which will provide insight into its members’ decision to raise the federal funds rate to the highest level in 22 years.

The dollar, which tends to strengthen when investors expect higher interest rates, was up 0.3% against a basket of six peers, the strongest since early July.

“The dollar’s rally over the past month has been fundamentally driven by recent data suggesting a resilient U.S. economy,” said Joseph Manimbo, senior market analyst at Convera.

In the government debt market, the yield on the policy-sensitive two-year U.S. Treasury note rose 0.08 percentage point to 4.97%, while the yield on the benchmark 10-year note was slightly higher at 4.2%. Bond yields rise as prices fall.

Two-Year Treasury Yield Line Chart (%) Shows Cautious Investors Shifting to Shorter U.S. Treasuries

Asian shares fell as China’s weak real estate sector fueled investor concerns about the health of the world’s second-largest economy as it reopened after three years of a strict Covid-19 lockdown.

Over the weekend, Chinese real estate developer Country Garden suspended trading in at least 10 mainland bonds. The company, once China’s biggest developer by sales, missed an international bond payment last week, fueling investor concerns that a two-year liquidity crisis in China’s property sector could escalate.

Hong Kong’s Hang Seng Index fell 1.6%, while the Hang Seng Mainland Property Index, which tracks Chinese property developers, fell 3.7%. In mainland China, the benchmark CSI 300 index fell 0.7%.

“Continued difficulties in China’s property sector added to last week’s poor Chinese data, which included deflation, trade and new lending,” said Chris Turner, head of FX strategy at ING.

Chinese stocks suffered their worst losses since March last week after a flurry of economic data showed China was slipping into deflation.

Exports fell and banks issued the lowest volume of new loans since the 2008 financial crisis. More data is expected this week, with the release of Chinese retail sales and industrial production data.

Weak economic data weighed on oil prices as investors worried about global fuel demand. International benchmark Brent crude fell 0.7% to $86.21 a barrel, while U.S. benchmark West Texas Intermediate fell 0.8% to $82.51 a barrel.

Elsewhere in Asia, Japan’s Topix fell 1 percent and South Korea’s Kospi fell 0.8 percent.

In Europe, the region’s Stoxx Europe 600 ended the session up 0.2 percent, with modest gains and losses throughout the day. Germany’s Dax rose 0.5%, while France’s Cac 40 gained 0.1%.

Shares in Amsterdam-based Philips led gains in Europe, rising 4.4 percent, after the billionaire Agnelli family bought a 15 percent stake in the Dutch company to support its transition from electronics to health technology.


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