Highlights
Stocks ended mixed to lower Tuesday after a weaker than expected retail sales report and as concerns multiplied about ill effects of AI on financial firms and other sectors. The Dow Jones industrial average was up 0.1 percent to a new closing record high but the broader S&P 500 lost 0.3 percent and the Nasdaq was down 0.6 percent. US Treasury yields declined, the dollar was mostly higher while oil and gold prices dipped.
The recovery in technology and growth sectors on Monday ran out of momentum on Tuesday and broader gains in the morning receded as selling picked up steam in the afternoon. Traders appeared to be trimming risk headed into the monthly employment report due on Wednesday. That inclination was underscored by disappointing retail sales report showing sales flat in December, well below expectations for a gain of 0.4 percent.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.