US Stock Market Slips Back from Record High Amid Economic Uncertainty

The US stock market slipped back from its record high after a weak update on the economy. The S&P 500 fell 0.2% from its previous record, while the Dow Jones Industrial Average dipped 107 points and the Nasdaq composite sank 0.3%. The pullback followed a report showing shoppers spent less at US retailers last month than expected.

The weak data raised concerns about inflation, but also created uncertainty around interest rates. Some economists believe that if inflation continues to decelerate, the Federal Reserve may hold off on rate hikes, which would slow down the economy and make borrowing more expensive.

However, others cautioned against overreacting to the weak data, suggesting it could be a temporary setback after unusual factors boosted retail sales in previous months. The University of Michigan's preliminary survey showed that consumer sentiment is weakening, particularly among older, lower-income groups who can be hurt most by inflation.

Reddit's stock jumped 12.6% after being added to the S&P 500 index on Tuesday, while Applied Materials fell 5.1% despite reporting stronger profit and revenue than expected. The company's CEO attributed its success to global demand for artificial-intelligence technology.