By Mucahithan Avcioglu
ISTANBUL (AA) - US stocks ended mostly lower Tuesday as investors reacted to lower-than-expected retail sales data and became concerned over the threat that artificial intelligence poses to the banking sector.
The Dow Jones Industrial Average rose 0.10%, or 52.27 points, to close at 50,188.14.
On the other hand, the Nasdaq declined 0.59%, or 136.2 points, to 23,102.48 and the S&P 500 fell 0.33%, or 23.01 points, to 6,941.81.
The Volatility Index (VIX), also known as the "fear index,” rose 2.48% to 17.79 points.
Financial stocks fell after the tech platform Altruist introduced a new AI-powered tax planning tool. Shares of LPL Financial, Charles Schwab and Morgan Stanley fell 8.3%, 7.4% and 2.4% respectively.
Costco and Walmart's shares dropped more than 2.6% and 1.8% respectively. That comes as the latest retail sales report indicated that consumer spending in December was unchanged, below economists' expectations of 0.4% monthly growth. Retail sales rose 0.6% in November.
Investors are waiting for the key jobs report on Wednesday and the Consumer Price Index on Friday.
Commerce Secretary Howard Lutnick said that thanks to increased exports, growth could top 6% in the first quarter of this year.
Meanwhile, on the data side, total household debt in the US increased 1% to $18.8 trillion in the fourth quarter of last year, with mortgages rising to $13.2 trillion.
While statements from Fed officials are also being followed, Cleveland Fed President Beth Hammack said that while they are evaluating the incoming data and weighing whether further policy adjustments are needed, they are in an appropriate position to keep monetary policy steady.