Stocks Retreat as Big Tech Falters

Economic Indicators - US November retail sales increased by +0.6% month-over-month, surpassing expectations of +0.5% [1] - US November PPI final demand rose by +3.0% year-over-year, exceeding expectations of +2.7% [1] - US December existing home sales rose by +5.1% month-over-month to a 2.75-year high of 4.35 million, stronger than the expected 4.22 million [4] Stock Market Performance - The S&P 500 Index decreased by -0.96%, the Dow Jones Industrials Index fell by -0.57%, and the Nasdaq 100 Index dropped by -1.53% [4] - Weakness in chip makers and the Magnificent Seven technology stocks is negatively impacting the broader market [3][15][16] - Energy producers are experiencing gains, with WTI crude oil reaching a 2.5-month high [17] Federal Reserve Commentary - Minneapolis Fed President Neel Kashkari indicated that the US economy shows "resilience" and does not see the need for an interest rate cut this month [5] - Philadelphia Fed President Anna Paulson mentioned potential for modest rate adjustments later in the year if inflation moderates and growth stabilizes [6] International Trade - Better-than-expected trade news from China, with December exports rising by +6.6% year-over-year and imports increasing by +5.7% year-over-year, supporting global growth prospects [7] Earnings Season - Q4 earnings season is beginning, with S&P earnings growth expected to rise by +8.4%, and +4.6% excluding the Magnificent Seven technology stocks [10]