S&P 500 Falls Short of Record as Dow Extends Rally Above 50,000 Ahead of Jobs Report

For a brief moment Tuesday, it looked like the $S&P 500(.SPX)$ would post its first record close of the month. Instead, the benchmark index slipped 0.3%, failing to break above its January 27 closing high.

The Nasdaq Composite dropped 0.6%, while the Dow Jones Industrial Average edged up 0.1%, marking its third consecutive record close and its seventh all-time high of 2026.

Dow Continues Climb After Crossing 50,000

Just last week, the Dow crossed the 50,000 milestone for the first time in history. The rally has been powered by strong gains in blue-chip names such as:

• $Goldman Sachs(GS)$

• Caterpillar

• Amgen

• Sherwin-Williams

On Tuesday, $Home Depot(HD)$ and Travelers led the Dow’s advance.

Unlike in 2025, when mega-cap tech stocks dominated returns, the market rally has broadened. So far in 2026, energy, consumer staples, industrials, and materials have outperformed the information technology sector.

That sector rotation has been a tailwind for the price-weighted Dow.

AI risk

Investors Pause Before January Jobs Report

Despite the Dow’s strength, overall market tone was cautious ahead of Wednesday’s highly anticipated January jobs report.

Economists expect:

• +75,000 nonfarm payrolls

• Unemployment rate steady at 4.4%

The labor data comes at a sensitive time for markets. A weaker-than-expected retail sales report earlier Tuesday raised fresh concerns about consumer strength and broader economic momentum.

Still, markets may need a solid employment reading to steady nerves after recent economic disappointments.

Retail Sales Miss Signals Consumer Slowdown

December 2025 retail sales were flat compared with November, falling short of expectations for a 0.4% increase.

Sales declined in eight of 13 categories, including:

• Furniture (tariff-sensitive)

• Clothing stores (holiday-driven spending)

For months, confidence surveys have weakened while spending remained resilient. The latest data suggests that resilience may be fading.

Household Debt and Delinquencies Rise

Additional pressure is emerging in household finances.

According to the New York Fed’s quarterly household debt report:

• Total household debt rose 1% to $18.8 trillion in Q4

• 4.8% of outstanding debt is now delinquent, up from 4.5% in Q3

The rise partly reflects resumed student loan reporting. However, economists are also monitoring an uptick in mortgage delinquencies, particularly among lower-income households.

Mortgage balances represent the largest share of household debt, making them a critical risk factor for economic stability.

Market Snapshot (Feb. 10, 2026)

• Dow Jones Industrial Average: 50,188.14 (+0.10%)

• S&P 500: 6,941.81 (-0.33%)

• $NASDAQ(.IXIC)$ : 23,102.47 (-0.59%)

• Hot Stock: $Datadog(DDOG)$ (+13.7%)

• Biggest Loser: S&P Global (-9.7%)

• Best Sector: Utilities (+1.6%)

• Worst Sector: Healthcare (-0.9%)

What’s Next for Stocks?

All eyes now turn to Wednesday’s January employment report, originally delayed due to the brief government shutdown.

A strong labor print could help:

• Support the S&P 500’s push toward a new record

• Reinforce confidence in the U.S. economic outlook

• Shape expectations for Federal Reserve policy in 2026

A weak report, however, could deepen concerns about slowing consumer demand and rising financial stress…

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.

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