US stocks fall after hot retail sales report suggests higher interest rates for longer

• US stocks dropped on Wednesday after a strong retail sales report suggested higher interest rates for longer.
• Retail sales jumped 3% in January, reversing a two-month slump in November and December.
• The retail sales report showed the biggest spending increase since March 2021. 

US stocks dropped on Wednesday after a hotter-than-expected retail sales report suggested to investors that interest rates might stay higher for longer.

Retail sales in January surged 3%, which was well above economist estimates of 1.8% and represented the biggest monthly gain for retail sales since March 2021.