Weak Retail Sales Do Not Mean a Weak Economy

Retail sales disappointed in July, but the market reaction suggests consumer weakness may not carry the same economic weight it once did.Chuck Zodda and Mike Armstrong explain why weaker consumer spending is being offset by massive corporate capital expenditures, AI infrastructure investment, and persistent federal deficits. They also discuss the costliest 30 year Treasury auction since 2001, why higher bond yields cannot be blamed on deficits alone, and what it would actually take for Washington to address the country’s fiscal problems. Plus, they look at how investments in Anthropic and other private AI companies are boosting Big Tech earnings, why the largest technology firms have become increasingly tied to one another, President Trump’s proposed drone tariffs, and the economic boost Boston received from the World Cup.