US stocks retrace from record levels on disappointing economic data

US equity indices opened slightly lower on Friday on weaker-than-expected monthly retail sales figure and an unexpected drop in wholesale prices (PPI). At the time of writing, the Dow Jones Industrial Average was off 15 points to a tad below 18,600 level, while Nasdaq composite slipped 5 point to 5224. The broader index, S&P 500, was lower by meager 1 point at 2185.

The indices are retracing after closing at all-time highs posted a day earlier and are being weighed down by disappointing US economic data. According to government reports released on Friday, US monthly retail sales for July remained flat after recording better-than-expected growth for three straight months. Meanwhile, US wholesale prices (PPI) unexpectedly fell 0.4% in July, marking its biggest drop since September 2015. 

While stocks retreated from higher levels, the greenback, as measured by the overall US Dollar Index, took a tumble and Treasury bond yields slumped close to record lows. Friday's weak economic data, accompanied with the disappointing second-quarter GDP growth figure, now seems to have negated possibilities of further Fed rate-hike decision by the end of this year.