A disappointing drop in retail sales raises more concern about the health of the consumer and reaffirms a widespread view that the Fed will not raise rates next week.
Fed funds futures immediately reflected lower odds — of just 18 percent for a September rate hike, down from 22 percent, after August retail sales were reported to fall by 0.3 percent, according to Jefferies. Odds for a December hike were just above 50 percent, based on fed funds futures.
