04:19 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 retreated after retail sales posted the steepest drop since May 2025, while crude oil rose amid the Trump administration's plans to impose unprecedented economic pain on Iran.

The Nasdaq Composite fell 0.3% to 26,729.16, the S&P 500 slipped 0.2% to 7,785.76, and the Dow Jones Industrial Average declined 0.2% to 53,732.41 on Friday. Technology 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 for 0.1% growth, according to a survey compiled by Bloomberg.

The probability of the Federal Reserve extending its policy pause to September jumped to 68% by Friday afternoon, from 56% a week ago, according to the CME FedWatch tool, building on gains after data this week showed consumer and wholesale price inflation rates, both headline and core, declined year over year in July.

"For the Fed, coupled with a weaker-than-expected jobs report last month, and some indications of cooling inflation, albeit from extremely elevated levels, a more moderate consumer perpetuates the expectation of a steady pace of policy for some time," Lindsey Piegza said in a note. "While not entirely removed, the more recent slew of increasingly moderate data will mitigate the sense of urgency for the Fed to adjust policy higher."

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 4.3 basis points to 4.68%. The two-year marched 2.5 basis points higher to 4.17%.

The US will soon announce unprecedented economic measures against Iran, Treasury Secretary Scott Bessent said, intensifying the Trump administration's effort to force Tehran's capitulation after almost six months of war, according to a Bloomberg report.

"Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country," Bessent was cited as saying in an interview with Newsmax on Thursday. The move will be part of a "one-two punch" that includes the continued blockade of Iran's ports, he added.

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 on 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 up 1.3% to $82.32 per barrel. The global benchmark North Sea Brent jumped 1.6% to $88.50 per barrel.

Applied Materials ( AMAT ) shares retreated 5.1%, among the worst performers on the S&P 500 and the Nasdaq, after the company reported fiscal Q4 earnings late Thursday.

Sandisk ( SNDK ) shares jumped 7.4%, 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 edged up 0.3% to $4,431.5, while silver futures slipped 0.2% to $64.88.