U.s. Stocks Close Lower As Retail Sales Data and Middle East Tensions Weigh

New York Stock Exchange closed lower on Friday, the last trading day of a week dominated by geopolitical developments in the Middle East and U.S. macroeconomic data. The Dow Jones Industrial Average fell 0.2% to 53,732.41 points, the S&P 500 declined 0.17% to 7,785.76 points, and the Nasdaq dropped 0.28% to 26,729.16 points. U.S. retail sales data released Friday were closely watched by investors following this week's inflation figures.

Retail sales fell 0.6% in July despite expectations for an increase, marking the first decline since October 2025. The University of Michigan's consumer sentiment index also slipped to 51 in August, below market expectations. On the geopolitical front, ongoing tensions in the Middle East continued to limit risk appetite in markets. U.S. Defense Secretary Pete Hegseth said the U.S. could maintain its naval blockade on Iran indefinitely.

Treasury Secretary Scott Bessent said in a television appearance that Washington would soon announce unprecedented economic measures against Iran. Iran announced it had shot down a U.S. MQ-9 Reaper drone that violated its airspace near the Strait of Hormuz.