Retail sales gained 0.4% in December from November, slightly below projections for a 0.5% increase, according to FactSet.

The December retail sales report comes as investors are closely watching for signs of health in the consumer as the Federal Reserve is expected to hold interest rates higher for longer than initially hoped.

U.S. retail sales increased in December as households bought motor vehicles and a range of other goods, pointing to strong demand in the economy and further reinforcing the Federal Reserve's cautious approach to cutting interest rates this year.