Retail sales came in flat (0.0%) vs +0.4% expected.
Core sales also softened.
That’s not what bulls wanted to see.
After strong holiday spending, this feels like consumer fatigue might finally be showing up. Inflation still biting? Higher rates catching up?
Market reaction so far:
• S&P 500 opened flat 🤔
• USD pulled back 💵
• Bond yields watching closely 👀
Now the real question…
Is this the first real sign of economic slowdown in 2026?
Or just a temporary pause after holiday spending?