Closing Bell: Tech Stocks Extend Sell-Off Despite Resilient Economic Data

Key Points

• Equities fell for a second straight session as investors rotated out of mega-cap tech.
• November Retail Sales exceeded expectations, with headline sales up 0.6% m/m and core sales up 0.5%.
• Wells Fargo shares fell 4.61% after missing Q4 revenue estimates due to weaker net interest income

The S&P 500 and Nasdaq-100 closed lower for the second consecutive session as the ongoing rotation out of mega-cap technology stocks and into more defensive sectors continued. The S&P 500 (SPX) declined 0.53%, while the Nasdaq-100 (NDX) fell 1.07%. Small-cap stocks outperformed, with the Russell 2000 (RUT) gaining 0.70% on the session. Energy, Consumer Staples, and Real Estate were the top-performing sectors, while Consumer Discretionary and Information Technology lagged.

Retail Sales Reinforce Consumer Spending Trends

November Retail Sales data came in stronger than expected. Headline Retail Sales rose 0.6% month-over-month, while Core Retail Sales increased 0.5%, topping consensus estimates of 0.4%. The Control Group—which excludes volatile categories such as food services, gas stations, and automobiles—advanced 0.4% month-over-month, a trend that could provide a positive tailwind for Q1 GDP if sustained.

Big Bank Stocks Fall After Earnings

Wells Fargo (WFC) edged lower after reporting earnings before the opening bell. The bank missed Q4 revenue expectations due to weaker-than-expected net interest income, pushing shares down 4.61% on the session. Despite the revenue miss, Wells Fargo reported strong underlying consumer activity, with credit card spending and new account growth up 20% year over year.

Market Events for Tomorrow

• 08:30 AM ET: Unemployment Claims
• 08:30 AM ET: Empire State Manufacturing Index
• 08:30 AM ET: Philly Fed Manufacturing Index
• 08:30 AM ET: Import Prices m/m
• 08:35 AM ET: FOMC Member Bostic Speaks
• 09:15 AM ET: FOMC Member Barr Speaks
• 10:30 AM ET: Natural Gas Storage
• 12:40 PM ET: FOMC Member Barkin Speaks
• 01:30 PM ET: FOMC Member Schmid Speaks
• 04:00 PM ET: TIC Long-Term Purchases

Notable Earnings for Tomorrow

• A.M. – BLK, FHN, GS, MS, TSM
• P.M. – JBHT

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