Tech Stocks Unsteady as Economic Data Raises Concerns

U.S. stock indexes appeared set to open flat following a big rally in tech stocks amid mixed economic data. Retail sales were unchanged in December, suggesting slower economic growth. Investors are focused on upcoming economic reports and corporate earnings, impacting stock market movements and Federal Reserve policy expectations.

U.S. stock indexes were poised for a lackluster opening Tuesday after a substantial rally in tech stocks the day before. The anticipated flat opening follows the release of retail sales data that remained unchanged for December, missing economists' expectations of a 0.4% increase, indicating a potential slowdown in consumer spending.

Investor focus is now on the nonfarm payrolls data and subsequent key inflation reports, which may sway the Federal Reserve's monetary policies. White House economic adviser Kevin Hassett highlighted expectations of lower job gains, corresponding to slower labor force growth and improved productivity, while President Trump's Fed chair nominee waits for Senate approval.

Corporate earnings remain in the spotlight with Spotify's shares surging due to better-than-expected earnings forecasts, while Coca-Cola and S&P Global faced setbacks. Investors are watchful of Nvidia's upcoming results amid concerns over AI expenditure and potential market shifts, as seen in the recent downgrades within the tech sector by UBS.

(With inputs from agencies.)