The U.S. Department of Commerce announced on August 14 that July retail sales fell 0.6% month-over-month, the largest decline since May 2025, and missed expectations of an increase of 0.1% (prior value: +0.2%). Online and auto sales fell by 2.2% and 1.8%, respectively, while clothing stores rose by 1.9%. The unexpected turn to negative retail figures may reflect that demand weakened after the boost from tax refunds faded. Risks of economic slowdown are rising. After the data, the U.S. dollar weakened and U.S. Treasury yields fell; traders trimmed bets on further rate hikes by the Federal Reserve. Consumption accounts for about 70% of the U.S. economy, and if weakness persists it could weigh on corporate earnings and risk-asset sentiment. $SPX $NDX is for informational purposes only and does not constitute investment advice.