Other sectors saw mixed results. Energy stocks weakened as Chevron fell 1.27%, and industrials like Caterpillar dropped 0.53%. Meanwhile, health care stocks, including Pfizer, bucked the trend with a 2% rise, after reaffirming its revenue guidance for 2025.
Stocks to Watch: Winners and Losers in Tuesday’s Trade
Individual stocks reflected the broader market divide. Tesla gained nearly 2% following an upgrade to “outperform” by Mizuho, which cited potential regulatory support under a Trump administration for autonomous driving technologies. Red Cat shares tumbled 14% after reporting a larger-than-expected loss, reversing gains seen earlier on drone sector optimism.
SolarEdge jumped 14% on the heels of Goldman Sachs’ double upgrade to “buy,” with the firm projecting a 2025 turnaround. Additionally, retail giant Albertsons climbed 1.8% after receiving an “outperform” rating from Telsey Advisory Group, boosting confidence in its growth outlook.
Economic News: Strong Retail Sales Add to Fed Uncertainty
November’s retail sales came in stronger than expected, rising 0.7% and exceeding forecasts of 0.5%. The results mark an acceleration from October’s upwardly revised 0.5%, signaling that consumer spending remains robust ahead of the holiday season. Excluding autos, sales increased 0.2%, slightly below expectations.
These numbers, outpacing the 0.3% rise in consumer price inflation, suggest resilient demand but add to concerns that the Federal Reserve may be acting prematurely with rate cuts. Analysts are now debating whether continued economic strength could fuel inflationary pressures.
The Fed Decision: Traders Await Critical Policy Signal
The Federal Reserve’s upcoming rate decision on Wednesday remains the market’s focal point. CME Group data shows a 97% probability of a quarter-point rate cut, but investors remain wary of its long-term impact. Analysts warn that easing monetary policy too quickly could risk a stock bubble or reignite inflationary concerns.
