- US stocks closed higher, while treasuries fell, as investors sorted through another batch of solid economic data for different takeaways, even as concerns mounted that it would force the Fed to act hawkishly.
- The S&P 500 rose 0.3% after falling more than 0.75% earlier. The Nasdaq 100 rose 0.8%. Two-year treasury yields remained close to 4.60%. The dollar gained ground against its major counterparts.
- US Retail sales increased by the most in nearly two years in January, implying that strong consumer spending will keep prices elevated and increase pressure on the Fed to step up its efforts to curb inflation. Homebuilder sentiment increased in February to its highest level since mid-2020, as low mortgage rates boosted the housing market.
- The data, which came one day after a hotter-than-expected US consumer price inflation report, pushed treasury yields higher on fears of further rate hikes. Nonetheless, equity investors found good news in the same reports.
