Stocks were mixed on Tuesday, with the Dow Jones Industrial Average (DIA  ) rising to another record closing high while the broader market slumped, as weaker-than-expected U.S. retail sales data impacted risk outlooks.

The blue-chip index climbed over 50 points to settle at 50,188.14 for the first time. Meanwhile, the S&P 500 Index (SPY  ) fell 0.3% and tech-heavy Nasdaq Composite (QQQ  ) lost about 0.6% to end the session at 6,941.81 and 23,102.47, respectively.

Moving markets, U.S. consumer activity slowed in December, a key spending month, as high inflation and tariff price impacts weakened the holiday-shopping season. U.S. retail sales were flat following a 0.6% increase in November, the Commerce Department reported Tuesday. Excluding autos, sales were also unchanged month-to-month.

On an annual basis, headline sales rose 2.4% in December, below November's 3.3% gain. Excluding autos, sales rose 3.3% annually in December.

"This is a K-shaped economy with strong spending from the top and much more cautious spending from the middle- and lower-income consumers," said Heather Long, chief economist at Navy Federal Credit Union, quoted by CNBC. "Retail sales were flat in December, driven by soft spending on autos, home furnishings, appliances and clothing. These items were hard hit by tariffs in 2025 and consumers shifted their spending elsewhere."

The soft sales report led to losses in key retailers such as Costco Wholesale (COST  ) and Walmart (WMT  ), with the latter expected to stay around its recent heights even if the company posts a strong fiscal fourth-quarter, according to Wells Fargo analyst Edward Kelly.

Walmart's stocks is up 24% over the past year and has recently crossed the $1 trillion market cap -- an exclusive club that is dominated by tech stocks like Apple (AAPL  ) and Amazon (AMZN  ). Kelly cautions in a Tuesday note to clients that even as the firm holds Walmart as an Overweight rating, the stock's gains may be a "multi-year story," as shares seem "a little more constrained" in the near-term.

Elsewhere, Cleveland Federal Reserve President Beth Hammack said in a speech on Tuesday that the central bank should hold interest rates at their current levels even as inflation eases, stating that inflation is "still too high" and has remained above the Fed's target 2% rate for several years.

"I believe monetary policy is in a good place to stay on hold as we assess the incoming data and weigh if, and how, policy may need to adjust further," Hammack said.

"If we see progress on both sides of our mandate, that tells me that our policy rate is already at the right setting and that we should hold it there. Rather than trying to fine tune the funds rate, I'd prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs," Hammack added. "Based on my forecast, we could be on hold for quite some time."

Looking ahead, market participants will turn their attention towards earnings reports from companies including Robinhood Markets (HOOD  ), Ford Motor (F  ), McDonald's (MCD  ), Shopify (SHOP  ), and T-Mobile US (TMUS  ) on Wednesday.