US stock markets drifted to a mixed finish on Tuesday following the latest signal that the US economy remains solid, though perhaps too strong for the Federal Reserve’s liking.

The S&P 500 edged down by 0.43, which is well less than 0.1 percent, to 4,373 after flipping between small gains and losses through the day. The Dow Jones Industrial Average added less than 0.1 percent to 33,997, and the Nasdaq composite fell 0.3 percent to 13,533.

Financial markets have been shaky in recent weeks due to worries about war in the Middle East and its potential impact on oil prices. But those worries have receded slightly to put the focus back on what usually drives the stock market’s long-term movements: where interest rates, the economy and corporate profits are heading.

A report on Tuesday showed shoppers spent more at US retailers last month than economists expected. That’s a sign of a healthy economy and likely a result of a still-solid job market, which should help to support profits at companies.

But a too-hot economy could also give inflation more fuel and push the Fed to keep interest rates high to suffocate it. Such a move would hurt prices for stocks and other investments.

The Fed is trying to pull off a delicate balancing act where it slows the economy just enough to drive down high inflation but not so much that it causes a painful recession.

Treasury yields in the bond market rose after the release of the report. The yield on the 10-year Treasury climbed to 4.83 percent from 4.69 percent late on Monday.

Traders increasingly accept the Fed’s forecasts that it will likely keep rates high for a long time. The central bank has already pulled its main interest rate to the highest level since 2001 and is debating whether to increase it one more time. (AP)