US Stocks Rise as Dow Jones Sets Fresh Record Ahead of Key Economic Data

US stocks climbed on Tuesday, led by the Dow Jones Industrial Average, which advanced more than 200 points to register another all-time high. Investors pushed equities higher despite weaker consumer spending figures, turning their attention instead to upcoming labor and inflation reports that could influence Federal Reserve policy.

The Dow gained around 0.5% in early trading, while the S&P 500 and Nasdaq Composite posted modest increases. The move extended Wall Street’s recovery, marking a third consecutive session of gains for major indexes.

Retail Sales Signal Cooling Consumer Activity

New data from the US Commerce Department showed retail sales were unchanged in December, missing expectations for growth. Spending had risen the previous month, making the flat reading a surprise for markets.

Sales excluding automobiles also failed to increase, and year-over-year growth slowed compared to November. Analysts noted that holiday shopping momentum weakened toward the end of the year, pressured by higher living costs, unfavorable weather, and ongoing tariff-related challenges.

While higher-income households continued spending at a steady pace, lower-income consumers appeared more cautious, highlighting a widening gap in purchasing behavior.

Market Momentum Holds Despite Soft Data

Even with signs of slowing demand, US stocks maintained their upward trend. Technology shares helped support gains, building on a rebound that began late last week after concerns around large-cap valuations sparked a brief selloff.

The S&P 500 has since reclaimed levels above its key moving averages, a development many traders view as a constructive signal. Investor confidence has improved as recent volatility failed to derail the broader bullish structure.

Investors Await Jobs and Inflation Reports

Attention is now firmly on two major economic releases: the US jobs report expected Wednesday and January inflation figures due Friday. These data points are likely to shape expectations around interest rates and the Fed’s next policy moves.

With the Dow Jones trading at record levels, markets will closely analyze the upcoming numbers for signs of economic cooling or renewed inflation pressure. Any surprise could influence short-term direction, but for now, optimism remains intact as Wall Street balances slowing growth signals with hopes for easier monetary conditions.

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