Tech and Retail Jolts: S&P 500 Retains Balance Amid Market Swings

On Tuesday, key indices faced turbulence as the S&P 500 and Nasdaq slipped, primarily impacted by technology and communication services. Retail sales figures, pivotal for economic forecasting, remained static in December, contrary to expectations of a rise, signaling slowing consumer spending and economic growth.

The communication services sector, notably influenced by Alphabet's 2.8% drop after a significant bond sale, pulled the S&P 500 down 1.3%. However, consumer discretionary stocks, led by Tesla and Marriott, provided some relief with an increase of 0.3%.

Despite challenges, advances in stocks such as Datadog, with a 13% jump, and a strong performance in Spotify shares up by 15%, showcased resilience. These movements came amidst expectations of steady interest rates until June and anticipated economic data releases, including nonfarm payrolls and inflation numbers.