US stocks fell for a third straight week led by tech firms. The S&P 500 fell 0.6% and the Dow was flat for the week. Abroad, the FTSE All World Ex US gained 1.0% for the week. The yield on the 10-year Treasury edged up over the week to settle at 0.69%.
China’s retail sales recovered to prepandemic levels. In addition, factory production, investment and property activity all gained pace.
US retail sales rose 0.6% in August, but at a slower pace than earlier in the summer.
The Fed left interest rates unchanged after its meeting and said it planned to keep interest rates near zero through 2023. It would keep rates near zero until the economy is close to full employment and inflation “is on track to moderately exceed 2% for some time.” They also increased their GDP estimate for the year expecting a 3.7% decline up from the 6.5% decline forecasted in June.
Initial jobless claims held nearly steady from a week before with 860,000 new filers.
US consumer sentiment rose more than expected in early September.
Analysts estimate that third quarter earnings will fall 22% from the third quarter last year.