US stocks and bonds gained after weaker-than-expected retail sales data suggested the Federal Reserve might hold off raising interest rates.
American retail sales were flat in July, following a 0.2 per cent gain in June, according to Commerce Department data. It was the worst performance since January, showing the US consumer is lacking confidence and that US policy makers might keep rates at record lows for longer.
"It will provide Fed Chair Janet Yellen with some of the rationale she needs to justify why the Fed should move gradually and keep interest rates low for longer than hawks within the Fed would like," Diane Swonk, chief economist at Mesirow Financial in Chicago, told Reuters.
That was considered good news for both Wall Street and US Treasuries. In late afternoon trading in New York, the Dow Jones Industrial Average added 0.48 per cent, the Standard & Poor's 500 Index gained 0.61 per cent, while the Nasdaq Composite Index climbed 0.94 per cent.
Gains in shares of Intel and UnitedHealth, last up 2.3 per cent and 1.4 per cent respectively, helped propel the Dow higher.