Wall Street dips as consumer sentiment slumps, ASX to keep sliding

Wall Street's recent streak of gains concluded on Friday, as a combination of waning consumer confidence and escalating oil prices dampened market sentiment. The S&P 500, Dow Jones, and Nasdaq all registered slight declines, ending a four-day rally. This downturn occurred despite a generally resilient earnings season, with rising crude prices and renewed geopolitical tensions in the Middle East contributing to the cautious mood.

In Australia, the ASX 200 futures indicated a further decline, suggesting the market would extend its losing streak into a fifth consecutive session. Investors are awaiting earnings reports from several prominent companies, including NAB, JB Hi Fi, BlueScope Steel, and Lendlease, which are scheduled to release their third-quarter and full-year results respectively.

The dip in U.S. markets was significantly influenced by a survey showing a slump in consumer sentiment. The University of Michigan's consumer sentiment index fell to 51 points in August, falling short of the anticipated 54.5. This decline, coupled with Friday's data revealing a surprising and sharp drop in U.S. retail sales, has diminished expectations for a Federal Reserve interest rate hike at the upcoming meeting. Consequently, U.S. Treasuries saw a decline, pushing the U.S. dollar lower and providing a boost to the Australian dollar, which rose to just under 71 U.S. cents.

European shares also finished lower on Friday, breaking a four-week winning streak. The rise in oil prices, driven by ongoing hostilities in the Middle East, overshadowed positive earnings news. Brent crude futures climbed 1.7% to $88.52 a barrel, while West Texas Intermediate futures rose 1.4% to $82.40. The selling pressure extended to chipmakers on Wall Street, with companies like Applied Materials, Broadcom, and Intel experiencing declines.