Stock Market Today: Stocks close lower, Treasury yields jump ahead of Fed meeting

Updated at 5:08 PM EST

U.S. stocks closed lower Tuesday trading, with the Dow extending its longest daily losing streak since 1978, amid another mover higher in Treasury yields tied to a stronger than-expected reading for November retail sales.

The S&P 500 finished 23 points, or 0.39% lower on the session, with a slide deeper into correction territory for Nvidia pulling the Nasdaq into a 65 point, or 0.2% decline. The Dow finished 267 points lower ahead of the Federal Reserve final policy decision of the year tomorrow in Washington.

Updated at 12:36 PM EST

Bear market turn

The Atlanta Fed's GDPNow forecasting tool, a real-time tracker of U.S. economic growth, suggests a current quarter advance of 3.1% heading into the final weeks of the year.

The latest update, however, is a shade slower than the 3.3% pace estimated on December 9 and likely reflects the ongoing slump in domestic manufacturing that is being largely offset by solid consumer and services spending.

Updated at 11:10 AM EST

Bear market turn

UnitedHealth Group ( UNH ) shares hit the lowest level in six months, extending their recent declines and pulling the Dow Jones Industrial Average into potentially its longest daily losing streak since 2008.

UnitedHealth, which has fallen more than 21% since the brutal murder of UnitedHealthcare CEO Brian Thompson on Dec. 4, has taken around half of the Dow's 1,300 point loss over the past eight sessions.

Updated at 9:37 AM EST

Soft open

The S&P 500 was marked 26 points, or 0.42% lower in the opening minutes of trading, with the Nasdaq marked 110 points, or 0.54% lower

The Dow was marked 185 points while the mid-cap Russell 2000 fell 13 points, or 0.54% following the hotter-than-expected November retail sales data.

Another solid retail sales number was in line with one of the primary themes of 2024: The economy continues to surprise to the upside," said Chris Larkin, managing director for trading and investing at E*Trade from Morgan Stanley.

"The Fed is still on track to cut rates tomorrow, but more strong economic data could make it more likely they’ll pause in January," he added.

Updated at 8:42 AM EST

Shop 'till you drop

U.S. retail sales powered higher again last month, rising 0.7% to a collective tally of $724.6 billion following record spending over the Thanksgiving that suggests solid consumer strength into the final months of the year.

The closely tracked control group number, which excludes autos, building materials, office supplies, gas-station sales and tobacco, and feeds into the government's GDP calculations, rose 0.4% on the month, matching the Wall Street consensus forecast and October's decline of 0.1%.

Futures contracts tied to the S&P 500 suggest a 19 point opening bell decline while those linked to the Dow Jones Industrial Average are called 166 points lower. The tech-focused Nasdaq is priced for a 50 point pullback.

Related: Retail sales surge tests bets on more Fed rate cuts in 2025

Updated at 6:58 AM EST

Pfizer outlook

Pfizer ( PFE ) shares jumped after the drugmaker unveiled fresh 2025 profit forecasts ahead of an Investor Day presentation prior to the opening bell.

Pfizer estimated revenue in the region of $61 billion to $64 billion, with adjusted earnings of between $2.80 and $3 a share, putting the midpoint just ahead of Wall Street's $2.88 consensus forecast.

Pfizer shares were marked 3.3% higher in premarket trading to indicate an opening bell price of $26.09 each.

Stock Market Today

Stocks ended mixed on Monday, with big gains for megacap tech stocks taking the Nasdaq to an all-time closing high and the Dow Jones Industrial Average extending its daily losing streak to eight, the longest since 2018.

Treasury bond yields were also in focus following S&P Global's stronger-than-expected reading of November business activity, which added to concerns that the economy would continue to run hot and stoke inflation early into the new year.

The Commerce Department's reading of November retail sales, due at 8:30 am Eastern Time, will likely add to that concern, and possibly the Fed's near-term outlook for growth and inflation, which will be published tomorrow afternoon alongside its headline rate decision.

Economists are expecting a solid rebound in overall sales, powered in part by record spending over the Thanksgiving weekend, with a headline gain of 0.6% from the final October tally of $718.9 billion.

Benchmark 10-year yields were last marked at 4.424% heading into the start of the New York session, with traders eyeing a key market inflection point at 4.5%. Two-year paper was trading at 4.276%

On Wall Street, stocks are looking at a muted open, with futures contracts tied to the S&P 500 suggesting an 11-point opening-bell decline and those linked to the Dow priced for a 125-point pullback.

Related: US stocks rule as bull market bets highlight 'American exceptionalism'

The tech-focused Nasdaq, meanwhile, is called just 10 points lower with Nvidia ( NVDA ) , Tesla ( TSLA ) and Broadcom ( AVGO ) active in premarket trading.

In overseas markets, Europe's Stoxx 600 benchmark slipped 0.38% in Frankfurt. Investors focused on another political crisis in Germany after Chancellor Olaf Scholz lost a no-confidence vote in parliament, which will likely lead to a snap election in February.

Overnight in Asia, reports that China is planning a record budget deficit next year in order to stoke consumer demand in the world's second largest economy failed to lift domestic stocks. The region-wide MSCI ex-Japan benchmark fell 0.67% into the close of trading.

Japan's Nikkei 225, meanwhile, ended 0.24% lower in Tokyo with eyes on Thursday's Bank of Japan rate decision.

Related: Veteran fund manager delivers alarming S&P 500 forecast