Stock market today: Dow moves higher, S&P 500 and Nasdaq dip after weak retail sales fuel Fed cut bets

February 11, 2026 - 01:13

Investors navigated a mixed trading session on Thursday, with major indexes diverging as new economic data fueled speculation about the Federal Reserve's next move. The Dow Jones Industrial Average managed modest gains, while the S&P 500 and Nasdaq Composite edged lower.

The focal point for markets was a surprisingly weak retail sales report, which indicated American consumers are pulling back on spending. This softer economic data, paradoxically, provided a lift to market sentiment by strengthening the case for the Federal Reserve to begin cutting interest rates sooner rather than later. Traders interpreted the slowdown as a sign that the central bank's prolonged policy of high rates is effectively tempering economic activity and inflation.

All attention now turns to the imminent monthly employment report. Wall Street is bracing for this crucial snapshot of the labor market, which has recently shown signs of cooling from its previously red-hot state. The report's findings on job creation and wage growth are expected to be a significant catalyst, potentially solidifying or unsettling current market bets on the timing of the Fed's policy shift. The data will play a pivotal role in shaping investor strategy in the weeks ahead.