Shares are mostly higher in Asia after U.S. stocks edged back from their all-time high following a weaker than expected report on the U.S. economy. U.S. futures were little changed and oil prices were mixed. The Japanese government reported Monday that the economy grew slightly faster than forecast. On Friday, the S&P 500 slipped 0.2% from a record set the day before. The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite fell 0.3%. A report showed shoppers spent less at U.S. retailers last month. Such data could keep interest rates low, which is a plus for investors. But it also suggests growth may be slowing at a time when inflation is still high.

U.S. inflation slowed last month and a measure of underlying price pressures also cooled, suggesting higher oil and gas prices from the Iran war are only having a limited impact on broader costs in the economy. Consumer prices rose 3.4% in July from a year ago, down slightly from 3.5% in June, the Labor Department said Wednesday. Meanwhile, Americans unexpectedly cut their spending in July as a boost from government tax refunds faded. Retail sales slipped 0.6% last month, the biggest drop since May 2025, from a revised gain of 0.2% in June, according to Commerce Department data released Friday.

U.S. stocks edged back from their all-time high following the latest economic report to come in surprisingly weak. The S&P 500 slipped 0.2% Friday from its record set the day before. The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite fell 0.3%. Stocks gave up modest gains from the morning after oil prices swung higher. Also raising uncertainty was a report showing shoppers spent less at U.S. retailers last month. Such data could keep interest rates low, which is something Wall Street loves, but it also raises the risk of slowing economic growth when inflation is still high.

President Donald Trump likes to say he started his war with Iran after 50 years of economic pressure failed to stop its nuclear weapons ambitions. But now the Republican president is betting another financial squeeze can end the war. Trump's administration hopes months of bombing have pushed Iran’s economy to a breaking point that will force its leadership to cave to demands to end its nuclear program and fully reopen the Strait of Hormuz to oil and natural gas tankers. It’s part of a larger pivot by Trump to argue Iran is on the cusp of financially collapsing, even though it's already endured decades of financial sanctions. Iran suggests the U.S. is “incapable of pursuing diplomacy.”

President Donald Trump has been highlighting his economic achievements, pointing to record stock market highs and claims of increased hiring, manufacturing, and investment. Some claims are true, while others are exaggerated or unclear. Ahead of the November 3 midterms, voters are frustrated with the economy and high living costs. An AP-NORC poll in late July showed only 32% of U.S. adults approved of Trump’s handling of the economy. Meanwhile, 69% described the economy as “poor,” with many citing the cost of essentials like groceries and gas as major stressors.

The U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. Meanwhile, the average long-term U.S. mortgage rate rose for the fourth consecutive week to its highest level in a year, another setback for prospective homebuyers hoping for a break from elevated home loan borrowing costs. The benchmark 30-year fixed rate mortgage rate rose to 6.66% from 6.58% last week, mortgage buyer Freddie Mac said Thursday.

President Donald Trump has for months pressured the Federal Reserve to slash interest rates, claiming it would be “Rocket Fuel!” for growth. But he seems to be losing his battle. Since the war in Iran began, borrowing money has become more expensive, meaning fewer families can afford mortgages or auto loans. The 10-year U.S. Treasury note’s interest rate shot up above 4.7% on Friday, surpassing the level the president inherited when he returned to the White House last year. Markets currently expect Fed officials to vote to raise rates further in September in order to reduce inflationary pressures. That's a concern for Republicans heading into the November midterm elections.

The U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. But consumer spending rose. And the Federal Reserve’s favored measure of inflation grew more slowly last month, but remained above the central bank’s 2% target. The Commerce Department reported Thursday that growth in U.S. gross domestic product — the nation’s output of goods and services — decelerated from 2.1% in the first three months of 2026 and came in below economists’ expectations. But consumer spending — which accounts for about 70% of U.S. economic activity — increased at a 3.2% annual clip

Wildfires near Bordeaux are hurting the wine region's economy. The fires have burned an area four times the size of Paris and forced 220,000 people to evacuate. The inferno is impacting tourism. Winemaker Edouard le Grix de la Salle is concerned that government warnings to avoid the area will hurt his family's wine business. The fires add to existing economic struggles, rising energy costs and declining wine consumption. A regional business leader says the blaze is an economic apocalypse. Bordeaux's mayor is pushing back against other officials’ pleas for people to avoid the region.