U.S. retail sales rebounded more than expected in June, suggesting a modest improvement in economic activity and giving the Federal Reserve cover to delay cutting interest rates while it gauges the inflation fallout from import tariffs.

Sales at retailers rebounded in June after the White House dialed back high U.S. tariffs, as consumers temporarily shrugged off the trade wars and spent more on cars, clothes, do-it-yourself projects and dining out.

US retail sales rebounded in June in a broad advance, potentially tempering some concerns about a retrenchment in consumer spending.

After an earlier pullback, consumers picked up their spending in June showing resilience despite anxiety high over tariffs and the U.S. economy

Wall Street’s market averages trade higher on Thursday, as investors digested fresh data on retail sales and jobless claims. The benchmark S&P 500 (SP500) has pushed up by 0.2% and the blue-chip Dow (DJI) has climbed by 0.

June retail sales data will give investors a look at how tariff-fueled inflation is shaping consumer spending.

The major indexes remain at or near record highs while navigating a plethora of catalysts, including earnings, economic data, tariffs, and Trump-Powell drama.