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U.S. Stocks Closed Mixed as Retail Strength Balances Price and Customer Mood

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Business Honor - U.S. Stocks Mixed on Retail Strength

Business Honor
18 August, 2025

U.S. stocks ended mixed amid strong retail sales, rising price predictions, and a weak customer mood.

Recently, U.S. stocks closed mixed as investors balanced rising price predictions and declining customer state of mind against strong retail sales. At 44,946.12, the Dow Jones Industrial Index increased 34.86 points. In the meanwhile, the Nasdaq dropped from 87.69 points to 21,622.98, and the S&P 500 dropped from 18.74 points to 6,449.80.

Last month's 0.5% rise in retail sales was in line with expectations and showed solid spending by customers. Sales increased 0.3% excluding cars. In addition, previous data was updated upward, suggesting stronger-than-anticipated growth. But there was an unexpected drop in customer trust. As fears about the economy increased, the University of Michigan's measure dropped from 61.7 in July to 58.6 this month.

Fears about prices also appeared as predictions for year-ahead prices this month rose to 4.9% from 4.5% the previous month. Reversing recent drops, predictions for the future increased to 3.9%. The cautious mood worsened by a small drop in manufacturing activity and a higher-than-expected rise in import costs in July. The Philadelphia Semiconductor Index fell 2.3% as semiconductor shares fell. The KBW Bank Index fell 2% as bank organizations also suffered. Steel and oil service industries decreased, but stocks in the biotech, medicine, and healthcare industries increased.

The 10-year U.S. Treasury yield continues its rise in bond market, raising 3.5 points to 4.32%. As investors balance the rising prices and financial signals, the markets might continue to be unpleasant in the future. The Federal Reserve keeps a close watch on data, and its next steps may impact the path of the market in years to come.