STARTRADER Market Recap | 16-Aug-2023

A report from the Department of Commerce indicated that retail sales in the US grew by 0.7% last month, surpassing expectations of a 0.4% increase, suggesting the American economy remains robust.

Concerns were reignited that interest rates might remain high for an extended period following the latest economic data. Investors are eagerly awaiting today’s release of the Federal Open Market Committee (FOMC) Meeting Minutes, which will outline the Federal Reserve’s upcoming plans.

Meanwhile, shares of major banks retreated after Fitch Ratings warned of potential credit rating downgrades for dozens of banks. Indeed, JP Morgan’s stock dropped by approximately 2.5% on Tuesday, recording its biggest daily loss in over 4 months, causing the bank to lose about $11 billion in market value in a single day.