Stock indexes closed mixed on Tuesday, with the S&P 500 down -0.33%, Dow Jones up +0.10%, and Nasdaq down -0.56%. Early gains were erased by weak retail sales data and hawkish Fed comments. 10-year T-note yield fell to 4.13%. Q4 earnings season shows positive results, S&P earnings expected to rise +8.4% in Q4.

US retail sales stagnated in December, hinting at weaker consumer spending. Fed comments on interest rates halted speculation of imminent rate cuts. Q4 employment cost index rose +0.7% q/q, lower than expected. Markets focus on upcoming economic data, including Jan nonfarm payrolls, unemployment rate, and CPI figures.

AI-infrastructure stocks like Western Digital and Intel declined, impacting the broader market. Wealth-management stocks dropped after concerns about AI disrupting financial advice. Homebuilding stocks and building suppliers rose as lower T-note yield supports housing demand. Individual stock movers include Goodyear Tire, Amentum Holdings, and S&P Global.

Interest rates fell with 10-year T-notes closing up by +10.5 ticks, yield at 4.141%. European bond yields also dropped. ECB comments on interest rates and inflation. Swaps show a 2% chance of ECB rate cut in March. Overseas markets settled mixed. Japanese Nikkei hit an all-time high, China’s Shanghai Composite rose, and Euro Stoxx 50 fell.

Read more at Nasdaq: Broader Market Falls Ahead of Wednesday’s US Jobs Report