NEW YORK (TheStreet) -- With strong retail sales numbers out Friday and an upbeat print on consumer sentiment, the markets were on the lookout for a hawkish move by Federal Reserve officials when they meet next week. As rate hike expectations flared up Friday, the S&P 500
The Dow Jones Industrial Average
The 10-year Treasury yield made a pronounced move, rising above 2.6% while the SPDR Gold Trust (GLD) GLD lost 0.91% to $118.38 as investors priced in expectations of the Fed's first rate hike taking place in the first quarter of 2015.
Retail sales jumped by an as-expected 0.6% in August, and July's previously flat retail sales reading was upwardly revised to a 0.3% increase, the Census Bureau reported. The report was the most important data point of the week since last week's tepid job report.
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"The strong retail sales report will allay one crucial concern at the Fed about the soggy spending performance to start the quarter, thereby increasing the Fed's confidence about the recovery," said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities. Mulraine said there's a high possibility this will raise the odds of the "considerable time" reference regarding keeping rates low being removed at next week's meeting.