Wall Street Flat as Mixed Job Data Clouds Outlook/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets hovered near record highs Tuesday as investors digested mixed job and retail sales data. Conflicting signals about the economy left traders uncertain about future Federal Reserve interest rate moves. Bond yields remained steady as Wall Street awaited upcoming inflation data.
Wall Street Market Recap: Quick Looks
- S&P 500 dipped 0.1%, slightly below its all-time high.
- Dow Jones fell 4 points; Nasdaq dropped 0.2%.
- Job market report showed rising unemployment but stronger-than-expected job gains.
- Retail revenue grew more than anticipated in October.
- Treasury yields were steady: 10-year at 4.18%, 2-year at 3.50%.
- Federal Reserve policy remains a key market driver.
- Investors await Thursday’s inflation report for clearer direction.
- AI-linked stocks showed mixed movement; Oracle and Broadcom rose, Nvidia declined.
- Kraft Heinz rose 1.2% after naming new CEO Steve Cahillane.
- Global markets fell across Asia and Europe, led by Japan and South Korea.
Deep Look
Wall Street Stays Near Record Levels as Investors Weigh Mixed Economic Signals
U.S. stock indexes opened Tuesday with minimal movement, lingering near historic highs as investors processed a series of mixed economic reports that left future Federal Reserve policy uncertain. The S&P 500 slipped by 0.1% in early trading, while the Dow Jones Industrial Average edged down four points and the Nasdaq Composite fell 0.2%.
The financial markets are responding cautiously to recent data showing contrasting signs in the labor and retail sectors. On one hand, the U.S. unemployment rate hit its highest point since 2021. On the other, job creation exceeded expectations, and consumer spending at retail stores in October grew more than forecasted.
Bond Yields Reflect Investor Caution
Following the release of the mixed data, Treasury yields initially dipped but then steadied. The 10-year Treasury yield remained at 4.18%, unchanged from Monday, while the two-year yield — which is more sensitive to short-term interest rate expectations — edged down slightly to 3.50% from 3.51%.
The muted market reaction suggests traders are still waiting for a more definitive economic signal, especially regarding inflation. Thursday’s upcoming consumer price index (CPI) report is expected to offer clearer insights into how quickly inflation is cooling, which in turn will inform the Federal Reserve’s next steps on interest rates.
Fed Policy Remains Market’s Primary Driver
Interest rates remain the dominant force shaping market sentiment. Lower interest rates tend to support economic growth and lift asset prices, but they also risk reigniting inflation. While the Federal Reserve recently signaled a cautious stance, some investors believe slowing labor market momentum could prompt additional rate cuts in 2026.
Still, recent government shutdown disruptions may have distorted some of the latest figures. That uncertainty further clouds investor confidence in interpreting the current direction of the U.S. economy.
“The December jobs report, which will be released in early January, may serve as a more accurate gauge of economic health and a better guide for the Fed’s upcoming decision,” said Kay Haigh, global co-head of fixed income and liquidity solutions at Goldman Sachs Asset Management.
AI Stocks and Tech See Mixed Performance
Technology stocks, particularly those tied to artificial intelligence, continue to display volatility. Oracle and Broadcom both rose — up 1.1% and 1.6% respectively — following better-than-expected quarterly earnings reports last week. However, shares of CoreWeave, a company specializing in AI chip rental services, fell 2.4%, and Nvidia slipped 0.2%.
The movement reflects a broader investor debate over whether current spending on AI infrastructure will translate into sustainable revenue and long-term productivity gains.
Corporate Movers: Kraft Heinz, Pfizer in Focus
In corporate news, Kraft Heinz shares rose 1.2% after announcing that Steve Cahillane, former CEO of Kellanova (parent of Kellogg’s), will become the company’s CEO on January 1. Once Kraft Heinz splits into two entities in the second half of 2026, Cahillane will lead the division retaining major brands such as Heinz, Philadelphia, and Kraft Mac & Cheese.
On the flip side, Pfizer shares dropped 1.6% after issuing its 2026 revenue forecast, which closely aligned with analyst expectations but failed to spark enthusiasm among investors.
Overseas Markets Slide
Global markets largely trended lower amid renewed concerns over economic conditions in Asia and Europe. Japan’s Nikkei 225 dropped 1.6% after data revealed continued weakness in factory output, increasing expectations that the Bank of Japan may soon hike interest rates.
Other major Asian indexes also fell: South Korea’s Kospi lost 2.2%, Hong Kong’s Hang Seng declined by 1.5%, and China’s Shanghai Composite was down 1.1%.
