Black Friday Shopping Tests U.S. Consumer Resilience Amid Inflation

The U.S. retail sector remains under scrutiny as Black Friday kicks off, revealing consumer responses to persistent inflation. Walmart anticipates growth, whereas Target forecasts lower holiday sales. The season will reflect consumer spending, crucial to the economy, amid inflationary concerns impacting interest rate expectations.

The U.S. consumer and retail sector take center stage as Black Friday marks the start of the holiday shopping period, testing how buyers are handling ongoing price pressures.

The S&P 500 has risen by 1.7% recently, nearing record highs after a strong corporate earnings season. While Walmart revised its annual sales forecast upwards, Target's lowered outlook signals contrasting fortunes for retailers during the holidays.

The holiday shopping season will be a key indicator of consumer spending patterns, which drive over two-thirds of the U.S. economy, affecting interest rate cuts by the Federal Reserve. While consumer optimism appears high, spending may not be uniformly strong across all categories.

(With inputs from agencies.)