Stocks Slide After Data as Trump-Putin in Focus: Markets Wrap

(Bloomberg) — Wall Street traders sent stocks down from all-time highs as data showed mixed indications on how American consumers are feeling about the economy. Investors also kept a close eye on a face-to-face meeting between Donald Trump and Vladimir Putin.

Following a surge from its April lows, the S&P 500 fell. Applied Materials Inc. led losses in chipmakers on a disappointing outlook. UnitedHealth Group Inc. soared as prominent funds piled into the insurer. Solar shares rallied. Longer-dated Treasuries underperformed. The dollar and oil retreated.

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Trump greeted his Russian counterpart with a handshake in Alaska as they kicked off a highly anticipated summit, with the US leader looking to secure an end to the war in Ukraine. A joint press conference was planned for after their meeting.

“While we cannot predict the outcome of the Alaska summit, we are on watch for potential disruptors as the trading environment, in our opinion, remains very sensitive to headline risk,” said Dan Wantrobski at Janney Montgomery Scott.

Before that, economic data showed a broad-based advance in US retail sales, boosted by car sales and major online promotions. Later, a separate report showed consumer sentiment unexpectedly fell for the first time since April and inflation expectations rose.

“Consumers are no longer bracing for the worst-case scenario for the economy feared in April,” said Peter Boockvar, author of The Boock Report. “However, consumers continue to expect both inflation and unemployment to deteriorate in the future.”

To Bill Adams at Comerica Bank, while the data don’t all point in the same direction, the US economy looks to be in OK shape.

“What consumers do is more important to the economy than what they say,” he said.

At eToro, Bret Kenwell says July’s retail sales figures weren’t necessarily a blowout. However, control group sales — which are used in the gross domestic product calculation — topped economists’ expectations, while June’s already strong report was revised even higher.

Retailers will start reporting earnings next week, which should provide more insights into consumer behavior, he noted.

As long as consumer spending holds up and companies are able to retain workers because of that robust spending, the flywheel can continue to spin, according to Chris Zaccarelli at Northlight Asset Management.

And that would push both corporate profits and stocks higher, he said.

“While the consumer appears relatively healthy, the Fed is in a tough spot with its dual mandate of maximum employment and stable prices,” said Kenwell at eToro. “If they opt to cut rates as the market currently expects, that could be another benefit for consumers.”

Attention will soon turn to next week’s central bank gathering in Jackson Hole, Wyoming, with traders getting ready for Federal Reserve Chair Jerome Powell’s speech.

Markets are still wholly convinced that officials will cut rates by 25 basis points in September — and follow that up with at least one other cut in October or December, noted Paul Ashworth at Capital Economics. He says Powell will possibly caution that a modestly restrictive policy stance remains appropriate.

At Bank of America Corp., strategists led by Michael Hartnett say US stocks are set to decline in the event of dovish signals from the Fed in Jackson Hole as investors “buy rumor, sell fact.”

Investors poured about $21 billion into US equity funds in the week through Aug. 13, after redeeming nearly $28 billion in the week prior, according to a BofA note citing EPFR Global data.

Retail investors are increasingly validated in the buy-the-dip approach, given the speed of the recovery from the recent selloff, potentially creating a self-fulfilling prophecy the next time the market experiences a minor selloff, according to Mark Hackett at Nationwide.

“Despite this well-established trend, there are few signs of excess or complacency, as many investors remain skeptical of the rally despite the market returning double-digits to date this year,” he said.

Corporate Highlights:

The Trump administration is considering using funds from the US Chips Act to take a stake in Intel Corp., according to people familiar with the discussions, part of efforts to rescue the embattled chipmaker and shore up domestic semiconductor manufacturing Clean energy stocks soared after the Trump administration released new guidance on eligibility requirements for tax credits that weren’t as punitive as the industry had feared. Opendoor Technologies Inc., a real estate company that became a meme stock in recent months, said Chief Executive Officer Carrie Wheeler is stepping down immediately, an announcement that sent the stock surging. UnitedHealth Group Inc. jumped after funds piled into the company, which has been hampered by a federal probe into its business practices and weakening results. Warren Buffett’s Berkshire Hathaway Inc. was among the investors, buying 5 million shares in the second quarter, according to a filing. David Tepper’s Appaloosa Management LP also invested, boosting its holdings of the health insurance giant by 2.3 million shares. Gilead Sciences Inc. Chief Executive Officer Daniel O’Day said the company’s new HIV prevention drug Yeztugo should be able to gain favorable insurance coverage despite questions about how the Trump administration will handle recommendations for treatments like this. Swiss chocolatier Lindt & Spruengli AG may shift production of its world-famous, gold-wrapped Easter bunnies to the US to sidestep import tariffs. Danish jewelry company Pandora A/S is weighing potential price increases in the US and elsewhere due to higher tariffs, according to its chief executive officer. Some of the moves in markets:

Stocks

The S&P 500 fell 0.3% as of 4 p.m. New York time The Nasdaq 100 fell 0.5% The Dow Jones Industrial Average was little changed The MSCI World Index was little changed Bloomberg Magnificent 7 Total Return Index fell 0.3% Philadelphia Stock Exchange Semiconductor Index fell 2.3% The Russell 2000 Index fell 0.6% Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.5% to $1.1701 The British pound rose 0.2% to $1.3555 The Japanese yen rose 0.4% to 147.23 per dollar Cryptocurrencies

Bitcoin fell 0.8% to $116,986.8 Ether fell 3.4% to $4,384.76 Bonds

The yield on 10-year Treasuries advanced three basis points to 4.32% Germany’s 10-year yield advanced eight basis points to 2.79% Britain’s 10-year yield advanced six basis points to 4.70% The yield on 2-year Treasuries advanced two basis points to 3.75% The yield on 30-year Treasuries advanced five basis points to 4.92% Commodities

West Texas Intermediate crude fell 1.3% to $63.12 a barrel Spot gold rose 0.1% to $3,339.15 an ounce ©2025 Bloomberg L.P.