Wall Street Cautious Ahead of Fed Decision Amid Retail Surge

U.S. retail sales outpaced expectations in November, sparking caution in technology stocks and leading to slight downturns in major indexes as investors await the Federal Reserve's interest rate decision. Tesla rose on a rating upgrade, while Covid-19 drugmaker Pfizer posted in-line profit forecasts for 2025.

On Tuesday, technology stocks dragged Wall Street down as investors awaited the upcoming Federal Reserve interest rate decision. A stronger-than-anticipated retail sales report in November, driven by robust vehicle purchases, highlighted the U.S. economy's resilience.

The Dow Jones dropped 0.53%, the S&P 500 0.47%, and the Nasdaq 0.48%. Treasury yields increased, affecting sensitive stocks as investors anticipate a cautious Fed stance into 2025.

Tesla rose after a Mizuho upgrade, while Pfizer projected aligned 2025 profits. Meanwhile, crypto stocks surged with Bitcoin's rise, and the S&P 500 stays on track for its best year since 2019.

(With inputs from agencies.)