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Stock Rally Resumes Amid Stubborn Inflation and Weak Retail Sales

Weak sales have raised concerns that consumer spending—a driving force behind the economic recovery since the end of the pandemic—is slowing down.
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Stock Rally Resumes Amid Stubborn Inflation and Weak Retail Sales
Traders work on the floor of the New York Stock Exchange on Feb. 12, 2025. Angela Weiss/AFP via Getty Images
Panos Mourdoukoutas
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After a two-week pause, the rally in U.S. stocks resumed last week, led by tech shares, as traders and investors shook off hotter-than-expected inflation data and a weak retail sales report.

Most of the gains came at the beginning of the week, thanks to a strong rally in tech shares, led by a rebound in the semiconductor sector. Meanwhile, steel and aluminum stocks climbed after news emerged last weekend that the United States planned to impose tariffs on imports. Additionally, better-than-expected earnings reports from McDonald’s and Rockwell Automation on Feb. 10 helped broaden the rally beyond the tech and materials sectors.
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”