US Equity Indexes Mixed After Weak Retail Sales Data, Ahead of This Week's Fed Rate Decision

12:48 PM EDT, 03/17/2025 (MT Newswires) -- US equity indexes were trading mixed after midday Monday following the release of retail sales data that fell short of market expectations and ahead of the Federal Reserve's interest rate decision to be announced on Wednesday.

The Nasdaq Composite fell 0.5% to 17,668.1, while the S&P 500 rose 0.1% to 5,644.0 and the Dow Jones Industrial Average climbed 0.5% to 41,685.2. Energy was the top gainer intraday, while consumer discretionary was the steepest decliner.

In economic news, US retail sales rose 0.2% in February, lower than the 0.6% increase expected in a survey compiled by Bloomberg and following the previous month's revised 1.2% fall.

"While an improvement in spending activity relative to the start of the year, consumers remain hesitant to ramp up spending amid ample uncertainty and unknowns," Stifel Chief Economist Lindsey Piegza said in a note Monday. "Coupled with an anticipation of higher rates of inflation, an erosion of consumer confidence is taking a toll on both a willingness and ability to spend, potentially limiting upside potential for broader-based growth in Q1."

On the Fed, Macquarie global forex and rates strategist Thierry Wizman said traders look to have "gotten too dovish."

"Yet instead of signaling confidence in its own outlook, the Fed may issue signals of no-confidence, instead, at its policy meeting this week" Wizman said in a note Monday. "'Uncertainty' is central bankers' new policy-outlook mantra."

In company news, Intel's ( INTC ) incoming Chief Executive Officer Lip-Bu Tan is considering significant changes to the company's foundry business and AI strategies as part of turnaround efforts, Reuters reported Monday. One of Tan's top priorities is revamping Intel's ( INTC ) manufacturing operations to attract external customers more aggressively. Intel ( INTC ) shares advanced nearly 8% in recent trading.

PepsiCo ( PEP ) agreed to acquire the prebiotic soda brand Poppi for $1.95 billion, which includes expected cash tax benefits of $300 million for a net purchase price of $1.65 billion. PepsiCo ( PEP ) shares added 1.8%.

The US 10-year Treasury yield fell 3.8 basis points to 4.27%, and two-year rate was unchanged at 4.02%.

The US Dollar Index was down 0.4% to 103.36.

West Texas Intermediate crude rose 0.6% to $67.59 per barrel.

Gold was up 0.1% to $3,004.2 an ounce, and silver declined 0.6% to $34.24 per ounce.

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