Stocks mixed but world index hits record high; Treasury yields fall
Signage is seen outside the LSEG (London Stock Exchange Group) headquarters in Paternoster Square, London, Britain, April 25, 2025. REUTERS/Toby Melville/File Photo
NEW YORK, Feb 10 : Major stock indexes were mixed on Tuesday, with a world equity index and the Dow hitting record highs although other key U.S. indexes weakened, while Treasury yields fell after U.S. data suggested the economy may be softening.
The yen was up again in the wake of Japanese Prime Minister Sanae Takaichi's decisive weekend election victory. Earlier, the Nikkei 225 hit a fresh peak.
The dollar traded mostly lower against major currencies following the U.S. data and after U.S. Commerce Secretary Howard Lutnick said he viewed the weaker dollar to be at a "more natural" level to promote U.S. exports and expand economic growth.
Among the day's reports, the Commerce Department said retail sales were unchanged in December, falling short of a forecast by economists polled by Reuters for a rise of 0.4 per cent and below the unrevised 0.6 per cent increase in November. Some investors say weaker data could allow the Federal Reserve more leeway to cut interest rates.
As investors digested the economic news, they braced for the nonfarm U.S. payrolls report for January, which is due on Wednesday.
Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said he suspects the jobs report may be weaker than expected.
"If that comes to fruition, that brings us closer maybe to a rate cut in the second half of the year or maybe the latter part of the first," he said.
The Dow edged up to register its seventh record close so far this year. But a 1.8 per cent drop in shares of Alphabet weighed on the S&P 500 and Nasdaq. The Google parent said it sold bonds worth $20 billion in a seven-part offering.
Investors have been concerned recently about the amount of money technology companies say they must spend to support the artificial intelligence boom, and software names have been hit by fears they could be upended by AI tools. The S&P 500 technology index ended down 0.6 per cent on Tuesday.
The Dow Jones Industrial Average rose 52.27 points, or 0.10 per cent, to 50,188.14. The S&P 500 fell 23.01 points, or 0.33 per cent, to 6,941.81 and the Nasdaq Composite fell 136.20 points, or 0.59 per cent, to 23,102.47.
Among the day's gainers, shares of Marriott International jumped 8.5 per cent after the company released fourth-quarter results.
MSCI's gauge of stocks across the globe was up 0.75 points, or 0.07 per cent, at 1,054.72, and hit another record high. The pan-European STOXX 600 index ended down 0.07 per cent.
The yen has rallied this week, seemingly on hopes that political stability in Japan and stimulus will boost growth and drive investor optimism.
Against the Japanese yen, the dollar was down 0.94 per cent to 154.4 in late afternoon trading.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.1 per cent to 96.85, with the euro down 0.15 per cent at $1.1895.
The yield on benchmark U.S. 10-year notes fell 5.1 basis points to 4.147 per cent, on track for its fourth straight day of declines. The yield has dropped more than 13 basis points over that time frame, its biggest four-day drop since mid-October.
White House economic adviser Kevin Hassett said on Monday that job gains could be lower in the coming months as the Trump administration's immigration policies slow labour growth and new AI tools boost productivity.
In commodities markets, U.S. crude fell 40 cents to settle at $63.96 a barrel and Brent fell 24 cents to settle at $68.80. Investors were watching for any news on diplomatic relations between the U.S. and Iran.
Other areas of recent market stress were calmer on Tuesday. British government bonds slightly outperformed peers, having lost ground on Monday as Prime Minister Keir Starmer came under increasing pressure. [GB/]
