**Market Update: Stocks Show Uncertainty Amid Latest Economic Data**
On the back of a strong rally in the previous session, stocks may exhibit indecisiveness in early trading on Tuesday. Major index futures indicate a marginally flat market opening, with S&P 500 futures down by less than 0.1%.
Futures remained relatively unchanged following a report from the Commerce Department showing that U.S. retail sales inched up slightly less than anticipated in May. According to the report, retail sales increased by 0.1% in May, following a revised 0.2% decline in April. Economists had forecasted a 0.2% rise in retail sales, compared to the previously unchanged reading reported for April.
Excluding sales from motor vehicle and parts dealers, retail sales decreased by 0.1% in May after a revised 0.1% slip in April. This number also fell short of economists’ expectations, who had predicted a 0.2% increase, matching the originally reported data for April.
Trading activity may remain muted ahead of the Juneteenth holiday on Wednesday, when the markets will be closed. However, it's worth noting that stocks showed a similar lack of direction on Monday before significant buying interest emerged, pushing the markets to new record highs.
Ahead of the trading session, the Federal Reserve is set to release its report on May's industrial production, which is expected to rise by 0.3% after being flat in April. Additionally, the Commerce Department will release its April business inventories report shortly after the market opens, with expectations of a 0.3% increase following a 0.1% decline in March.
On Monday, stocks began the session without clear direction but rose significantly as the day progressed. This upward momentum led the major averages higher, with the Nasdaq and S&P 500 achieving new record closing highs. The major indices retreated from their peak levels before closing but remained firmly positive. The Nasdaq surged 168.14 points or 1.0% to 17,857.02, the S&P 500 increased by 41.63 points or 0.8% to 5,473.23, and the Dow climbed 188.94 points or 0.5% to 38,778.10.
In international markets, the Asia-Pacific region mostly saw gains on Tuesday. Japan's Nikkei 225 Index advanced by 1.0%, while China's Shanghai Composite Index rose by 0.5%. European markets have also moved higher, with Germany's DAX Index up by 0.3%, and both the French CAC 40 Index and the U.K.'s FTSE 100 Index rising by 0.5%.
In commodities trading, crude oil futures are inching up $0.03 to $80.36 per barrel after surging $1.88 to $80.33 per barrel on Monday. Conversely, after a $20.10 drop to $2,329 per ounce in the previous session, gold futures are edging up $3.70 to $2,332.70 per ounce.
On the currency front, the U.S. dollar is trading at 157.73 yen, slightly down from 157.74 yen at Monday’s close in New York. Against the euro, the dollar is valued at $1.0729, a slight decrease from $1.0734 yesterday.
