"US Retail Sales Data Dampens Stock Market, Import Prices Higher Than Expected"

Wall Street stocks closed lower as upbeat US retail sales data in December reduced expectations for an early rate cut by the Federal Reserve. The S&P 500 fell to its lowest in over a week, with Amazon, Nvidia, and Alphabet weighing on the index. Tesla dropped 2% after cutting Model Y prices in Germany, while the S&P 500 real estate sector tumbled 1.9%. Traders' expectations of a 25-basis-point Fed rate cut in March dipped to 55% after the data release. The CBOE Market Volatility Index rose to an over two-month high, and the S&P 500 remains down about 1% from its record high close in January 2022.