Fundamental Comment

Significant recovery in retail sales push US futures higher

Significant recovery in retail sales push US futures higher

US equity futures rose sharply today, after US retail sales data for May showed a record high, which added to optimism among traders that the worst impact of the Corona pandemic has ended.

The retail sales index in the United States of America during the month of May increased by 17.7%, higher than the previous reading, which was revised to show a decrease of 14.7%. Analysts had estimated an increase of 7.9%.

The Core Retail Sales Index for the same month also showed an increase of 12.4% from a previous revised decrease of 15.2%, while expectations were for an increase of 5.5%.

The big recovery in retail sales data came in light of increased spending by the American family sector after the precautionary measures were eased to reduce the outbreak of the Corona virus, which was reflected positively on May figures.

At 12:31 GMT, the Dow Jones futures rose by 718 points or 2.78%, while the S&P 500 futures rose 2.24% or 68.75 points, and the Nasdaq index increased by 171.25 points or 1.75%.

On the other hand, the dollar index rose after the release of the US data to trade at the level of 96.59, whilst it recorded the highest level at 96.72.

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