Dow Jones set a record for the third straight day, S&P 500 and Nasdaq resumed falling

The Dow Jones blue-chip index ended trading on Tuesday, February 10, with a third consecutive record at the close. However, the dynamics was not positive for the whole market: S&P 500 and Nasdaq Composite declined after two days of growth. Investors were reacting to weaker-than-expected retail sales data. Market concerns about the threat that artificial intelligence could pose to the financial sector also influenced sentiment.

- The index of "blue chips" Dow Jones Industrial Average rose by the end of the day by 0.1% and for the third consecutive session updated the historical maximum. This happened for the first time since October 28, wrote MarketWatch with reference to Dow Jones Market Data. The index reached the level of 50,188.14 points.

- The S&P 500 broad market index fell 0.33% to 6,941.81 points on Tuesday.

- The Nasdaq Composite Technology Sector Index fell 0.59% to 23,102.47 points.

- The Russell 2000 index of small-cap stocks fell 0.35% to 2,679.77 points.

On Tuesday, the yield on 10-year bonds of the U.S. Treasury Department fell to the lowest level in about a month, Bloomberg notes. The bonds were affected by weak retail sales data, which reinforced expectations of a Fed interest rate cut this year, the agency writes. Money markets began to lay a slightly higher probability of three easing of monetary policy by the Fed this year, with two cuts already fully factored into prices, Bloomberg explains.

Consumer activity slowed sharply over the Christmas holiday period amid a series of unfavorable factors: weather conditions, the impact of duties and persistently high inflation, according to data released Tuesday by the Commerce Department. Consumer spending was unchanged in December, while economists surveyed by Dow Jones had expected a 0.4% monthly increase, CNBC wrote. Retail sales rose 0.6% in November. Because of these data under pressure on Tuesday were the shares of retailers Costco and Walmart, which fell by 2.6% and 1.8%, respectively.

Shares of financial companies also fell on Tuesday, after technology platform Altruist launched a new AI-based tax planning tool. Shares of LPL Financial, one of the largest U.S. brokerage providers and platforms for financial advisors, fell 8.3%, shares of investment platform developer Charles Schwab fell 7.4%, and global provider of services for brokers and investors Morgan Stanley lost 2.45%.

Market participants will now await the release of a key labor market report on Wednesday and Consumer Price Index data on Friday.

- "Consumers appear to have shown less momentum in the final months of 2025 than previously thought - a less encouraging starting point for growth estimates in 2026," BMO Capital Markets strategist Vail Hartman told Bloomberg.

- The retail sales report "can't be called a disaster," but it's not a constructive signal either - especially amid lingering concerns around the labor market and continued volatility in a number of asset classes, notes eToro investment strategist Bret Kenwell. "Tomorrow's jobs report will be key," he noted in an interview with Bloomberg. - Weak data could further shift sentiment toward risk aversion if growth concerns start to build, while a solid reading could partially dampen them."

- "There seems to be a rotation into other segments of the market that may be more insulated from the AI theme," Anthony Saglimbene, chief market strategist at Ameriprise Financial, told CNBC, referring to Tuesday's capital rotation out of financial sector stocks. He also noted gains in other sectors: commodities and utilities.

This article was AI-translated and verified by a human editor