S&P 500 Stalls Near Record Highs as Broader Market Strengthens

Investors balance strong earnings, inflation concerns, and shifting sector leadership while retail sales dip unexpectedly.

The S&P 500 ended Friday little changed but gained 1.5% for the week, with the broader Russell 1000 also nearing record highs.
Retail sales fell 0.9% in January, below expectations, but economists attribute the decline to weather disruptions and post-holiday spending pauses.
Communication services and materials sectors led market gains in 2025, while former tech leaders like Tesla and Microsoft underperformed.
Intel surged 25% this week following speculation about potential partnerships and U.S. government support for domestic chip manufacturing.
Corporate earnings remain robust, with 75% of S&P 500 companies beating fourth-quarter estimates by an average of 6.3%.