01:16 PM EDT, 08/14/2026 (MT Newswires) -- (Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)

US equity indexes fell after retail sales unexpectedly slumped in July, posting the largest monthly drop since May 2025, and crude oil rose amid the Trump administration's plans to impose unprecedented economic pain on Iran.

The Nasdaq Composite fell 0.5% to 26,676.1, the S&P 500 slipped 0.2% to 7,780.2 and the Dow Jones Industrial Average declined 0.3% to 53,707.5 after midday Friday. Technology, healthcare and consumer discretionary were among the steepest decliners, while energy led gainers.

Retail sales slid 0.6% amid declines in spending on motor vehicles and at gas stations, following a 0.2% increase in June, the Census Bureau reported Friday. The consensus was 0.1% growth, according to a survey compiled by Bloomberg.

"American consumers took a breather last month, despite the tailwind from rising equity markets," BMO Capital Markets Senior Economist Sal Guatieri said in a separate note. "This, together with a weaker jobs report and subdued core (consumer price index) inflation, raise the odds of the (Federal Open Market Committee) staying patient again in September."

The probability of the Federal Reserve extending its policy pause to September jumped to almost 70% by Friday afternoon, from 56% a week ago, according to the CME FedWatch tool, building on gains after data this week showed headline and core consumer and wholesale price inflation rates declined year over year in July.

The University of Michigan's preliminary consumer sentiment index fell to 51.0 in August from 55.2 in July, below expectations for a much smaller decrease to 55.0 in a Bloomberg-compiled survey.

Respondents saw one-year inflation expectations at 4.3%, up from 4.2% in July, while five-year inflation expectations remained at 3.3% for the third straight month.

Most US Treasury yields rose, with the 10-year yield up 5.1 basis points to 4.69%. The two-year yield climbed 1.9 basis points to 4.16%.

Treasury Secretary Scott Bessent said the US plans to announce measures on Iran next week that have "never been seen," CNN reported. US Secretary of Defense Pete Hegseth said the US can sustain its blockade against Iran "indefinitely," Al Jazeera, a Middle Eastern broadcaster, reported.

Transit through the Strait of Hormuz appeared to grind to a near standstill on Friday after two more ships were attacked at the chokepoint, Reuters reported. The Abu Dhabi National Oil Company from the United Arab Emirates said its vessels were attacked Thursday evening, the news report said, adding that the UAE government blamed Iran, which made no immediate comment.

Crude oil futures rose, with the front-month US West Texas Intermediate contract climbing 0.9% to $81.96 per barrel and the global benchmark North Sea Brent jumping 1.3% to $88.05 per barrel.

Applied Materials ( AMAT ) shares retreated 5%, one of the worst performers on the S&P 500 and the Nasdaq, after the company reported lower free cash flow for the first nine months of the fiscal year as capital expenditures climbed sharply.

Sandisk ( SNDK ) shares jumped 6.7%, among the top gainers on the S&P 500 and the Nasdaq, after Wells Fargo and RBC lifted their price targets for the company.

Gold futures advanced 0.5% to $4,440.1, and silver futures edged up less than 0.1% to $65.03.