US Bond Rally: Weak Retail Sales Boost Fed Rate Cut Expectations
POINT US retail sales decline increases expectations for a Federal Reserve rate cut 10-year Treasury yield drops below 4.5% , marking a five-week rally S&P 500 and Nasdaq rise , while the US dollar weakens Meta and Dell stocks climb , but Intel and consumer-related stocks face potential adjustments US Retail Sales Decline: A Sign of Economic Slowdown? US retail sales in January fell by 0.9% month-over-month , marking the largest decline in nearly two years. This sharp pullback follows a strong consumer spending trend in late 2024. As a result, market analysts are now betting on an increased likelihood of a Fed rate cut. Expert Opinions David Russell (TradeStation) : "Consumer sentiment is weakening, which increases the probability of a Fed rate cut." Jose Torres (Interactive Brokers) : "This weak retail data has revived expectations for rate cuts, but the earlier inflation report this week remains a wildcard." Investment Strategy Implications Slowing consumer...