U.S. stocks decline due to disappointing results from retail sales and jobless claims and tensions overseas in Iraq.
Dow Jones Industrial Average tumbled 0.65% to 16,734.19, and the Nasdaq shed 0.79% to 4,297.63. S&P 500 fell 0.71% to 1,930.1.
Retail sales increased 0.3% in May, short of expectations for a 0.7% increase. Initial claims for jobless benefits edged up 4,000 to 317,000, exceeding expectations for 310,000. Which shows consumers are spending less, and consumer spending makes up 70% of the economy.
The tension in Iraq has in fact affected the markets, due to supply and Iraq is a major source for oil production, the price of oil surged affecting consumers on the expensive gas prices. The increasing violence and disruption in Iraq can possibly bring US involvement back into Iraq as investors fear U.S. re-entering a war they have left. At this moment, U.S. involvement in the Iraq is uncertain.
Crude-oil futures rallied 2% to settle at $106.53 a barrel, Gold futures gained 1% to settle at $1,273.60 a troy ounce.