The S&P 500 edged lower on Tuesday as investors responded to softer-than-expected retail sales data and mounting concerns over the potential impact of artificial intelligence on the financial sector.
The benchmark index declined 0.33% to close at 6,941.81, while the Nasdaq Composite fell 0.59% to settle at 23,102.47. In contrast, the Dow Jones Industrial Average gained 52.27 points, or 0.10%, finishing at a record 50,188.14. Earlier in the session, the Dow marked its third straight intraday high, following last week’s historic move above the 50,000 milestone for the first time.
Retail stocks came under pressure after December retail sales data showed flat consumer spending, falling short of economists’ expectations for a 0.4% increase. Costco dropped more than 2%, while Walmart declined over 1%. The prior month had recorded a 0.6% rise in retail sales.
Investors are now focused on upcoming economic data, including Wednesday’s major jobs report and Friday’s consumer price index release.
Financial stocks also weakened after tech platform Altruist introduced an AI-driven tax planning tool, heightening competitive concerns. Shares of LPL Financial slid 8.3%, Charles Schwab fell 7.4%, and Morgan Stanley lost more than 2%.
Despite Tuesday’s pullback, Wall Street is coming off two consecutive days of gains, led by a rebound in technology stocks. The Dow recently set fresh intraday and closing records, and market participants remain optimistic that equities can maintain upward momentum after last week’s sell-off failed to cause significant technical damage.
Notably, the S&P 500 has reclaimed support above its 50-day and 100-day moving averages after briefly slipping below them last week. Additionally, several asset classes are outperforming the benchmark index — a development traders view as a constructive signal for broader market strength.
