Markets Wobble as Investors Anticipate Earnings Amid Economic Uncertainty

U.S. equities experienced a slight decline on Friday as the market prepared for a corporate earnings season and evaluated recent economic data. This follows record closes by the S&P 500 and Nasdaq, countered by a dip in the U.S. dollar and a fall in Treasury yields.

Consumer sentiment in the U.S. saw improvement in July, along with a decrease in inflation expectations, despite concerns over potential long-term price pressures. However, single-family home construction dropped to an 11-month low due to high mortgage rates and economic uncertainty, suggesting another quarterly contraction in residential investment.

Despite these challenges, news of stronger retail sales and decreased jobless claims signaled modest economic improvements. As corporate giants like Netflix posted strong earnings, investor confidence gained a boost, while attention remains on upcoming reports from Alphabet and Tesla as a test for market stability.

(With inputs from agencies.)