US equity indexes experienced a downturn around midday Tuesday, following stronger-than-expected retail sales data and the commencement of the Federal Open Market Committee’s two-day policy meeting. The S&P 500 dipped 0.3% to 6,054.1, while the Nasdaq also fell 0.3% to 20,112.2 and the Dow Jones Industrial Average dropped 0.5% to 43,504.5.
In the bond market, US Treasury yields showed mixed performance intraday, with the 10-year yield decreasing by 1.8 basis points to reach 4.38%. The two-year yield remained relatively unchanged at 4.25%. Turning to the economy, US retail sales surged by 0.7% in November, marking the most robust growth since a 1.1% increase in the same month of 2021 and surpassing the 0.6% growth anticipated in a survey compiled by Bloomberg.
October's figures reported a 0.5% increase. When excluding motor vehicle and gasoline sales, retail sales still climbed by 0.2% in November, following a similar 0.2% gain in October. On the production side, US industrial output fell by 0.1% in November, which stood in contrast to expectations of a 0.3% increase as suggested by a Bloomberg survey, and followed a downwardly revised 0.4% decline in October.
In the corporate realm, Pfizer ($PFE) announced projections for higher earnings in 2025, maintaining revenue expectations aligned with this year's likely results. The pharmaceutical giant aims to continue its strategy of "disciplined execution" alongside cost-reduction measures. Pfizer’s stock soared by 4.5% intraday, making it the leading performer on the S&P 500.
Conversely, Amentum ($AMTM) was recorded as the worst performer on the index, dropping 7.4% intraday after disclosing a fall in adjusted earnings and sales for fiscal Q4. In commodity markets, West Texas Intermediate crude oil futures saw a decrease of 1.8% to $69.43 a barrel..