Business Inventories Rise 0.4% in Feb, Beating Forecasts After Retail Sales Surge

U.S. business inventories climbed 0.4% month-over-month in February to $2,686.8 billion, topping the +0.2% consensus and revised prior flat reading, potentially signaling softer demand ahead. This follows a robust 1.7% jump in March retail sales to $752.1 billion—the largest monthly gain since January 2023—though heavily driven by a 15.5% gasoline price spike amid Iran tensions. Core sales ex-autos rose 1.9% MoM, but control purchases gained just 0.8%, painting a mixed consumer picture. S&P 500 traders eye inventory build against sales strength for clues on growth, Fed path, and cyclical earnings risks.