Wall Street slips as retail sales growth cools, AI stock valuation concerns weigh on markets

Wall Street's major stock indices traded lower on Thursday as investors digested softer-than-expected momentum in US consumer spending and growing concerns over the stretched valuations of artificial intelligence-linked stocks.

In the early trading, the Dow Jones Industrial Average was up 0.2% at 52,751.45. The broad-based S&P 500 declined 0.4% to 7,543.96, while the tech-rich Nasdaq Composite Index dropped 0.8% to 26,051.43.

Fresh economic data showed US retail sales rose 0.2% in June from the previous month, matching economists' forecasts but slowing significantly from the revised 1.0% increase recorded in May.

Despite the moderation, analysts said the figures still pointed to resilient consumer demand. They noted that lower gasoline prices during the month likely reduced the overall value of retail sales, suggesting household spending remained relatively healthy even as headline growth eased.

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