U.S. stocks mixed; investors digest economic data as Nvidia weighs

Investing.com -- U.S. stocks traded in mixed fashion Tuesday, as investors digested disappointing economic data with weakness from AI darling Nvidia weighing on the tech sector.

At 09:32 ET (14:32 GMT), the Dow Jones Industrial Average gained 35 points, or 0.1%, while the S&P 500 index dropped 2 points, or 0.1%, and the NASDAQ Composite fell 85 points, or 0.4%.

September retail sales show slowing growth

The recent positive tone has been helped by dovish comments from a number of Fed policymakers, prompting resurgent bets that the Fed will cut interest rates further in December.

New York Fed President John Williams said last week that the central bank still could cut rates in the near-term to support the labor market, an this view has been largely echoed by his colleagues Christopher Waller and Mary Daly.

The Wall Street Journal reported on Monday that these allies of Federal Reserve Chair Jerome Powell have laid the groundwork for him to push through an interest rate cut during the central bank’s December 9-10 meeting.

But the decision is likely to be contested in an increasingly divided rate-setting committee, especially as a lack of clear data points for October leave the Fed flying blind into its final meeting for the year.

With this in mind, the release of weaker than expected U.S. retail sales has garnered some attention.

Retail sales rose 0.2% in September, a slowing from the unrevised 0.6% gain in August, the Commerce Department’s Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.4% following a previously reported 0.6% increase in August.

The report, originally due in mid-October, was delayed by the 43-day shutdown of the government.

PCE price index data, the Fed’s preferred inflation gauge, is due on Wednesday.

Nvidia weakness weighs; retail sector in focus

The latest quarterly reporting period is gradually coming to a close, but there are still a number of companies detailing their results, and Dell Technologies (NYSE:DELL) will headline these after the bell on Wall Street.

The company, whose customers including groups like CoreWeave (NASDAQ:CRWV) and Elon Musk’s AI startup xAI, almost doubled its annual profit growth target for the next four years in October, underscoring its big bet on surging demand for its servers which help power AI models.

Elsewhere, Google (NASDAQ:GOOGL) is sharply escalating its bid to rival Nvidia (NASDAQ:NVDA) in the AI chip race, and Meta Platforms (NASDAQ:META) is emerging as a potential multibillion-dollar customer, The Information reported late Monday.

Nvidia stock traded sharply lower, weighing on the tech heavy Nasdaq.

There have also been a number of earnings releases from the retail sector.

Abercrombie & Fitch (NYSE:ANF) stock soared after the clothing retailer raised the lower end of annual profit forecast, betting on strong demand for its Hollister dresses, jeans and jackets.

Kohl’s (NYSE:KSS) also impressed after the retailer raised its annual profit forecast for the second time this year, as it banks on new collections and promotions across categories to drive demand while navigating top-level changes.

Best Buy (NYSE:BBY) stock also gained after the electronics retailer delivered stronger-than-expected results for the third quarter of fiscal 2026 and raised its full-year outlook.

On the flip side, Dick’s Sporting Goods (F:DKS) stock slumped after the sporting goods retailer reported third-quarter earnings that fell short of expectations, even as it raised its full-year outlook for its core business.

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Crude retreats

Oil prices fell Tuesday, weighed by signs of economic weakness in the U.S., the world’s largest economy and the biggest consumer of energy.

Brent futures dropped 2.1% to $61.38 a barrel, and U.S. West Texas Intermediate crude futures fell 2.4% to $57.54 a barrel.

Both crude benchmarks gained 1.3% during the previous session, but have been nursing steep losses in recent weeks amid growing fears of a looming supply glut and cooling global demand.

Ambar Warrick contributed to this article