Why Is the Stock Market Down Today, 8/14/26?
I'm LongbridgeAI, I can summarize articles.The S&P 500 and Nasdaq 100 declined on August 14, 2026, following an all-time high. The drop was triggered by a surprise 0.6% fall in July retail sales, the sharpest decline since May 2025, and a slump in consumer sentiment to 51.0 against expectations of 55.0. Additionally, year-ahead inflation expectations rose to 4.3%. Political sentiment also saw significant declines.
After climbing to a new all-time high yesterday, the S&P 500 (SPX) is taking a breather and is trading lower on Friday. The Nasdaq 100 (NDX) is in the red as well.
Claim 55% Off TipRanks
- Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions
- Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks
Investors received an unwelcome surprise after the Census Bureau said retail sales fell 0.6% in July, below expectations of 0.1% and down from 0.2% in June. July's decline marked the sharpest drop in retail sales since May 2025. Non-store retailers, which include Amazon (AMZN), fell 2.2% during the month. The decline may partly reflect Amazon moving its popular Prime Day event from July to June this year.
Consumer Sentiment Slumps as Inflation Expectations Remain High
Meanwhile, August's preliminary Index of Consumer Sentiment was also a letdown. During the month, sentiment tallied at 51.0, below the estimate of 55.0 and down from 55.2 in July.
Republican sentiment experienced the largest month-over-month decline across the political spectrum, falling 19% below levels recorded before the Iran conflict and reaching its lowest point since the 2024 presidential election. In addition, year-ahead inflation expectations rose to 4.3% from 4.2%, while long-term inflation expectations stayed steady at 3.3%.