US stocks pulled back slightly from records on Tuesday as a retail sales update showed Americans continuing to spend despite a weakening labor market and the Senate confirmed President Trump's pick, Stephen Miran, as a Federal Reserve board governor.

The benchmark S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) fell less than 0.1%, while the Dow Jones Industrial Average (^DJI) dipped nearly 0.3%.

In an otherwise light week on economic data, on Tuesday, investors received the latest figures on retail sales showing strong consumer spending despite sticky inflation and a wobbly labor market. Retail sales in August rose 0.6% from the prior month, more than the 0.2% expected.

In other news, the Senate narrowly confirmed Stephen Miran, President Trump's Fed pick, in a 48-47 vote on Monday evening — a day before the central bank's policy meeting kicks off Tuesday. The move has put Miran in place just in time to cast a crucial vote on the direction of interest rates.

Though Miran has said he would act independently, his intention to take a leave of absence — but not resign — from his current role as a White House advisor has raised questions about the future of Fed independence, especially as Trump pursues firing Fed governor Lisa Cook.

In day trading Monday, the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) climbed to new record highs. US-China trade talks and anticipation Fed officials will announce a rate cut at its next meeting boosted sentiment.

Tesla (TSLA) stock rose 2% on Tuesday morning after wiping out its year-to-date losses on Monday following CEO Elon Musk purchased shares of the EV maker for the first time since 2020. Oracle (ORCL) ripped higher after CBS News reported that the company was among a consortium of firms included in a US-China TikTok deal.

But the main event of the week lands Wednesday when the Fed will announce its decision on rates. Markets are confident policymakers will cut rates due to a slowdown in the labor market, despite persistently high prices. Traders currently see a 96% chance of a 25 basis-point cut and a 4% chance of a jumbo reduction.

On Friday, Trump and Chinese President Xi Jinping are expected to discuss trade and a new framework for a TikTok deal.

The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) nudged higher on Tuesday after climbing to fresh records during the previous trading session.

The benchmark S&P 500 edged less than 0.1% higher at the open, and the Nasdaq(^IXIC) rose around 0.2%. The Dow Jones Industrial Average (^DJI) fell more than 0.1%.

The gains Tuesday come after the Senate confirmed President Trump's pick, Stephen Miran, as a Federal Reserve board governor and a retail sales update showed consumers staying resilient despite a weakening labor market and continued inflation.

Americans just keep spending.

Retail sales in August rose 0.6% from the prior month, more than the 0.2% expected and the latest sign that US consumers continue to be resilient in the face of a labor market that has shown some signs of stress.

Excluding spending on cars and gas, sales rose 0.7% last month.

The largest category increases were seen in spending at clothing stores and nonstore retailers — which captures e-commerce spending — suggesting a strong back-to-school shopping season. The retail sales data is not adjusted for inflation.

\\"Net, net, the consumer hasn’t pulled the plug on the economy yet,\\" said Chris Rupkey, chief economist at FWDBONDS, \\"and until they do, growth will continue to chug along at a moderate pace that seems to defy gravity in the face of rising tariff costs and store-bought prices.\\"

Economic data: Retail sales preliminary reading (August); Import price index (August); Export price index (August); Industrial production (August); Capacity utilization (August); Business inventories (July); NAHB Housing Market Index (September)

Earnings calendar: Ferguson Enterprises (FERG)

Here are some of the biggest stories you may have missed overnight and early this morning:

'Jobless expansion' fuels bull case as Fed rate cut looms

Senate confirms Trump pick Stephen Miran as Fed governor

Trump bid to fire Cook before Fed rates meeting blocked by court

US-China trade talks resume as TikTok deal in play

Wall Street raises alarm on Trump ending quarterly earnings

Supreme Court tariff ruling could 'cause massive uncertainty'

Valuation angst shifts from Big Tech to rest of S&P 500

US Treasury Secretary Bessent praises Bullard in search for Fed chief

US Treasurys are leading global bond markets this year as expectations of a Federal Reserve rate cut overturn bearish sentiment.

Bloomberg News reports:

US government securities have returned 5.8% in 2025, the best result among the world’s 15 biggest debt markets in local-currency terms, based on Bloomberg indexes. In a sign of the rally’s magnitude, the extra yield on Treasuries over their global peers — while still significant — has dropped to a three-year low.

“The Fed isn’t cutting into a strong economy, it’s cutting into weakness and this should form the basis for Treasuries to outperform,” said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities in Singapore, who has covered debt markets for 25 years. “By comparison, Japan to the UK to France, all have problems spanning fiscal to politics that’s bludgeoning sentiment on their debt.”

Read more here.

Bloomberg reports:

Gold (GC=F) hit another fresh record, as investors bet on a Federal Reserve rate cut this week and weighed the scope for more monetary easing in coming months.

Bullion on Tuesday surpassed Monday’s all-time high of around $3,685 an ounce, where it was also supported by a gauge of the US dollar falling to the lowest in more than seven weeks. While a rate cut this week is priced in by markets, the Fed will also release its quarterly update of economic and rate forecasts, dubbed the dot plot, and Chair Jerome Powell will hold his post-decision press conference.

Gold has surged more than 40% this year, outpacing major assets such as the S&P 500 index, and recently surpassed its inflation-adjusted peak reached in 1980. Persistent trade and geopolitical uncertainties, along with concerted purchases from central banks and inflows to exchange-traded funds, have added to the momentum. Goldman Sachs Group Inc. has forecast bullion could approach $5,000 an ounce if just 1% of privately-held Treasuries shift to the precious metal.

Read more here.