S&P 500, Nasdaq dip with economic data, earnings in focus

Group 1: Market Overview - The Dow Jones Industrial Average rose by 52.27 points, or 0.10%, reaching 50,188.14, after hitting an intraday record high [4][8] - The S&P 500 declined by 23.01 points, or 0.33%, closing at 6,941.81, while the Nasdaq Composite fell by 136.20 points, or 0.59%, to 23,102.47 [4][8] - The S&P 500 narrowly missed a return to its late January record close, indicating some hesitation as it approaches high levels [5][8] Group 2: Retail Sales and Consumer Spending - U.S. retail sales unexpectedly stalled in December, with households reducing spending on vehicles and other big-ticket items, suggesting a slower growth path for consumer spending [7][8] - The flat retail sales reading contrasted with economists' estimates of a 0.4% growth [7][8] Group 3: Technology Sector and AI Investment - Major technology companies, including Amazon, Alphabet, Meta, and Microsoft, are projected to collectively spend hundreds of billions in 2026 to support the artificial intelligence boom [7][8] - Concerns about the financial commitments required for AI development are influencing investor sentiment [7][8] Group 4: Individual Stock Performances - Datadog's shares surged by 13.7% after exceeding quarterly estimates, leading the S&P 500 percentage gainers [5][8] - Marriott's stock rose by 8.5%, marking its largest daily gain since April, driven by a projected 35% increase in fees from co-branded credit cards [5][8] - Spotify shares increased by 14.7% following a forecast of first-quarter earnings above expectations, attributed to strong user growth and price hikes [5][8] - Conversely, S&P Global's shares fell by 9.7% after forecasting 2026 profit below analysts' estimates, impacting peers like Moody's and MSCI [5][8] Group 5: Market Sentiment and Future Outlook - Trader hopes for a more dovish Federal Reserve increased, with the probability of a one-notch rate cut in April rising to 36.9% from 32.2% [7][8] - Caution prevails ahead of the upcoming nonfarm payrolls report, with concerns about potential lower job gains due to slower labor force growth and higher productivity from AI advancements [2][8]