Wall St slides as retail sales surge fuels rate concerns

Wall Street’s main stock indexes closed sharply lower on Tuesday as stronger-than-expected retail sales data fueled concerns about extended periods of higher interest rates. The Commerce Department reported that retail sales grew 0.7% in July, surpassing expectations of a 0.4% rise. The positive retail sales data suggests that the U.S. economy remains strong. However, this led to worries among investors that interest rates could stay at current levels longer than anticipated. Additionally, a report from Fitch warned of potential downgrades to multiple U.S. banks, further dampening market sentiment. The S&P 500, Nasdaq, and Dow Jones Industrial Average all ended the session in negative territory, with banks experiencing the most significant decline.