Gains in Wall Street indexes on Friday were not enough to erase a loss for the week while resilient consumer spending supported longer-dated Treasury yields and gold rose as a steady inflation reading supported bets on future Federal Reserve rate cuts.
The U.S. economy grew faster than previously estimated in the second quarter amid strong consumer spending and business investment, though momentum appears to be slowing as the effects of tariffs and policy uncertainty start to filter through.
Starbucks said it would close underperforming stores in North America, including its iconic Seattle roastery, as CEO Brian Niccol presses ahead with his restructuring effort, which is expected to cost $1 billion in a bid to revive the company’s flagging sales.
Gold prices eased as the U.S. dollar firmed, retreating from a record high scaled in the previous session, while investors hunkered down for economic data due later in the week for further cues on the Federal Reserve’s policy path.
Britain’s FTSE 100 closed higher, led by miners and defence stocks, while investors assessed corporate updates and measured comments by Federal Reserve Chair Jerome Powell.
The benchmark FTSE 100 reversed earlier losses to gain 0.3%.
U.S. stocks retreated, as investors booked profits with indexes near record levels after Federal Reserve Chair Jerome Powell flagged potentially stretched stock prices and ahead of a reading on inflation later in the week.
