Retail Sales Surge Boosts Market Confidence Amid Fed Speculations

November retail sales outperformed expectations with a 0.7% monthly increase, reflecting consumer resilience in the U.S. Despite pressure from cautious Federal Reserve interest rate decisions, strong market movements were observed, including Tesla's rise post-rating upgrade, amid mixed tech stock performance.

U.S. retail sales saw a 0.7% rise in November, surpassing forecasts and indicating consumer resilience, while the market anticipates the Federal Reserve's interest rate decision this week. This positive retail data suggests robust economic footing, reinforcing arguments for a more cautious monetary policy approach in 2025.

Despite strong consumer metrics, futures signaled a downward shift across major Wall Street indexes, with rate-sensitive equities facing pressure from elevated Treasury yields. Meanwhile, technology stocks showed mixed performance, with notable movements from Tesla, which gained following an upgrade from Mizuho, and Nvidia, which declined.

As the market waits for the central bank's rate pronouncements, the potential influence of President-elect Trump's fiscal policies remains a focal point for investors. S&P 500 is poised for significant annual gains, driven by technology sector strength and ongoing optimism, suggesting potential profit-taking as December concludes.

(With inputs from agencies.)