US stocks today: Wall Street hovers near record highs as weak retail data fuels rate-cut hopes

Wall Street stocks traded near record levels on Tuesday as investors digested weak US retail sales data and a mixed set of corporate earnings, boosting expectations that the Federal Reserve could cut interest rates later this year.The S&P 500 was marginally higher, briefly sitting just above its all-time high, while the Dow Jones Industrial Average rose around 0.4 per cent to hover near record territory. The Nasdaq Composite also edged up slightly. According to news agency AFP, markets were largely indecisive early in the session as traders balanced concerns about slowing consumer spending with optimism over possible monetary easing.US retail sales data showed no growth in December, missing economists’ expectations and raising concerns about the momentum of the world’s largest economy. Shoppers spent roughly the same in December as in November, signalling potential weakness in household demand, which is the main engine of US economic growth, as per AP.

Rate-cut bets strengthen, bond yields fall

The softer retail data pushed Treasury yields lower, with the benchmark 10-year yield falling to around 4.13 per cent from 4.22 per cent a day earlier, reported news agency AP. Traders also increased bets that the Federal Reserve could cut interest rates three times or more this year, according to CME Group data, though most still expect two cuts.

The retail sales report comes ahead of key US data releases later this week, including unemployment figures on Wednesday and inflation numbers on Friday. These updates are expected to play a crucial role in shaping the Fed’s interest rate outlook. While stubborn inflation could keep rates higher for longer, signs of labour market weakness may prompt quicker easing.CFRA Research’s Sam Stovall said the data could strengthen the case for additional rate cuts but warned investors must balance this against “the possibility of an economic slowdown”.

Mixed earnings keep stocks in check

Corporate earnings offered a mixed picture. Coca-Cola shares slipped after the company reported quarterly revenue growth that fell short of expectations and issued a cautious outlook.S&P Global tumbled after giving a weaker-than-expected profit forecast, amid concerns about competition from AI-driven rivals.In contrast, Hasbro jumped after beating profit and revenue estimates and announcing plans to return up to $1 billion to shareholders through share buybacks. DuPont also gained after posting stronger-than-expected quarterly results and issuing an upbeat profit outlook for 2026.Outside the US, Japan’s Nikkei 225 surged more than 2 per cent to a fresh record, driven by expectations that a newly elected parliament will support tax cuts and pro-growth measures. Other Asian markets saw modest gains, while European indices traded mixed.Overall, markets remained supported by hopes of lower interest rates, even as investors weighed signs of a cooling US economy against resilient corporate performance.