Choppy trading on Wall Street reflected traders’ caution ahead of key economic data releases later this week. A report on December’s personal income and spending, which includes the Fed’s preferred inflation gauge, is expected to draw attention, along with the minutes of the latest Fed policy meeting for clues on the interest rate outlook.

Earlier, major indexes fluctuated as weakness in technology stocks dragged the Nasdaq to its lowest intraday level in nearly three months. Investor concerns over AI-related disruptions and uncertain returns have pressured big tech shares, while home builder confidence also slipped, with the NAHB/Wells Fargo index falling to 36 in February—its lowest reading since last September. With the unexpected dip, the housing market index dropped to its lowest level since hitting 32 last September.

computer hardware stocks continued to see substantial weakness on the day, with the NYSE Arca Computer Hardware Index tumbling by 3.2%. Gold stocks also moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 3.2%. Housing, software and energy stocks also saw notable weakness, while airline stocks moved sharply higher, driving the NYSE Arca Airline Index up by 2.5%.

Asia-Pacific stocks turned in a mixed performance, with many markets closed for holidays. Japan's Nikkei 225 Index fell by 0.3% while Australia's S&P/ASX 200 Index rose by 0.2%. European stocks moved mostly higher on the day. While the French CAC 40 Index climbed by 0.5%, the German DAX Index and the U.K.'s FTSE 100 Index both advanced by 0.8%.

In the bond market, treasuries spent most of the session lingering near the unchanged line before closing roughly flat. The yield on the benchmark ten-year note which moves opposite of its price, edged down less than a basis point to 4.05%.