U.S. Stocks Mixed Amid Retail Sales Data and Interest Rate Speculations

On Tuesday, U.S. stocks showed mixed performance with the Dow Jones Industrial Average hitting a new high, buoyed by strong retail sales data. While S&P 500 rose, tech-heavy Nasdaq fell due to declines in megacap growth stocks. Market sentiment was influenced by expectations of potential interest rate cuts by the Federal Reserve.

On Tuesday, U.S. stocks displayed a mixed performance. The Dow Jones Industrial Average continued its upward momentum, building on Monday's record close, thanks to solid retail sales data boosting expectations of the Federal Reserve nearing an interest rate cut.

The S&P 500 also saw gains, but the tech-driven Nasdaq was pulled down by declines in megacap growth stocks like Nvidia Corp and Microsoft Corp. Small-cap stocks experienced a notable rally, with the Russell 2000 index climbing for a fifth consecutive day, marking its longest streak of gains since April 2000.

Investor sentiment seemed to shift towards undervalued market sectors, with Dow transportation and value stocks outperforming the broader indexes. Strong retail sales data reassured markets about consumer resilience, which so far has cushioned the economy from high interest rates potentially leading to a recession.

(With inputs from agencies.)