Major United States benchmarks finished mixed on Tuesday (Wednesday AEDT) as investors digested softer-than-expected retail sales data and mounting concerns over the potential impact of artificial intelligence on the financial sector.
The Dow Jones Industrial Average rose 52.3 points or 0.1% to close at 50,188.2, extending its recent advance and notiching a fresh record closing high. The S&P 500 fell 23.0 points or 0.3% to 6,941.8, while the Nasdaq Composite declined 136.2 points or 0.6% to 23,102.5.
Retailers were among the session’s notable laggards. Shares of Costco dropped 2.6%, while Walmart lost 1.8%, after fresh data showed U.S. retail sales were flat in December.
The reading fell short of expectations for a 0.4% monthly increase, and followed a 0.6% rise in November.
Market participants are now focused on key economic releases later in the week, with the delayed U.S. nonfarm payrolls report due on Wednesday (Thursday AEDT) and consumer price index data scheduled for Friday (Saturday AEDT).
ANZ analysts noted: "U.S. labour market and CPI inflation data this week will test market expectations for an extended pause in the FOMC’s rate-cutting cycle.
"We believe that a restart of the easing cycle in March is warranted. Recent data show no evidence of stabilisation in the labour market at the start of 2026, while wage growth signals the labour market is a source of disinflation.
"Given the lagged adjustment in wages, we believe there is a growing risk that the Fed will undershoot its inflation target."
Financial stocks were also under pressure after tech platform Altruist unveiled a new AI-powered tax planning tool, intensifying concerns about competitive disruption within the sector.
Shares of LPL Financial slid 8.3%, while Charles Schwab fell 7.4% and Morgan Stanley declined 2.5%.
On the bond markets, yields edged lower. The 10-year U.S. Treasury yield fell 1.4% to 4.141%, while the 2-year yield declined 1% to 3.452%.
