The stock market dipped on major indexes Thursday, with small caps leading the decline. Federal Reserve Chairman Jerome Powell stated that the Fed doesn’t need to be “in a hurry” to cut rates. The S&P 500 and Nasdaq are holding steady, maintaining most of the gains from the Trump bump.
However, many leading stocks have been volatile, particularly around earnings reports. Tesla tumbled on reports that the incoming Trump administration is considering plans to eliminate EV tax credits. Costco Wholesale is holding just above a buy point, with earnings due next week.
Palantir Technologies is shifting its stock listing to the Nasdaq from the NYSE, which could lead to its inclusion in the Nasdaq 100. Palantir stock rose modestly in overnight action. Applied Materials beat fiscal Q4 expectations but provided a cautious Q1 revenue outlook, causing its stock to drop sharply in extended trading.
Dow Jones futures were down 0.3%, S&P 500 futures fell 0.4%, and Nasdaq 100 futures dropped 0.7%. The 10-year Treasury yield remained steady at 4.43%. The October retail sales report is anticipated at 8:30 a.m. ET, with expectations of a 0.3% gain from September, or 0.4% excluding food and gasoline.
China’s economic data was mixed overnight, with October retail sales rising 4.8% year-over-year, beating expectations of 3.8%. Industrial production grew 5.3%, slightly below September’s 5.4% and the forecasted 5.5%. Late Thursday, Berkshire Hathaway’s 13F filing with the SEC disclosed significant portfolio moves.
Berkshire has drastically reduced its stakes in certain stocks while acquiring shares in Domino’s Pizza, which saw an early rise on Friday. The stock market rally continued to pull back from Monday’s record highs as the Trump bump diminishes. Indexes slightly extended losses late Thursday following Powell’s comments on rate cuts, which did not differ significantly from last week’s statements.
market softens as Trump bump fades
Biomed and other medical stocks fell after Donald Trump appointed Robert F. Kennedy Jr., a known vaccine skeptic, to Health and Human Services.
The Dow Jones Industrial Average fell 0.5%, while the S&P 500 and Nasdaq both declined 0.6%. Small-cap Russell 2000 slumped 1.4%. Not many stocks are flashing buy signals currently.
Government tech consultants, including Booz Allen Hamilton, Leidos Holdings, and Science Applications, suffered significant losses. U.S. crude oil prices fell 0.4% to $68.70 a barrel. Among notable ETF movements, Innovator IBD 50 ETF tumbled 3.2%, iShares Expanded Tech-Software Sector ETF fell 1.3%, ARK Innovation ETF dropped 3.6%, and ARK Genomics ETF declined 5.9%.
Tesla stock fell 5.8% to 311.18 on Thursday, down 13.2% from Monday’s high of 358.64. This follows last week’s significant 29% gain. Tesla stock remains above key moving averages despite fears about the elimination of the $7,500 EV tax credit proposed by Trump’s transition team.
Nvidia stock dropped 0.1% to 146.09 after initial gains. Nvidia earnings set for November 20 will significantly impact the stock and related tech sectors. Costco stock dipped 1.05% to 923.09, holding just above a buy point.
Costco earnings are several weeks away, with Walmart, which owns Sam’s Club, reporting next week. The stock market still appears relatively healthy despite the pullback. A modest retreat could create new buying opportunities, but caution is advised.
The current environment suggests limited action and focusing on watchlists. Nvidia and Costco are highlighted as key stocks to watch, with Tesla also noted for potential developments.
