The S&P 500 ended its three-day winning streak on Thursday, slipping 0.21% to settle at 5,937.34. The tech-heavy Nasdaq Composite dropped 0.89% to 19,338.29, while the Dow Jones Industrial Average fell 68.42 points, or 0.16%, to 43,153.13. Apple shares were down 3.7%, posting their worst day since August 5.
Other major tech firms also faced declines, with Microsoft and Alphabet slipping nearly 2% and 1%, respectively. Despite earlier gains from strong corporate earnings, the market was unable to sustain momentum. Keith Buchanan, senior portfolio manager at Globalt Investments, said, “Earnings have started out positively with the banks, but today’s market action suggests that more is needed to propel the next leg up.”
On Wednesday, Wall Street had its strongest session since November, with the Dow climbing more than 700 points and the S&P 500 and Nasdaq rallying 1.8% and 2.5%, respectively.
This rally was spurred by a moderate improvement in core inflation in December’s consumer price index and strong earnings from big banks. WTI crude prices rose approximately 2.8% week-to-date, set for their fourth consecutive week of gains, the first such streak since July 2024. Brent crude climbed 1.9% this week, also on pace for four straight weeks of higher prices.
The utilities sector jumped 2.3% on Thursday, making it the best-performing segment of the S&P 500. The consumer discretionary sector slipped 1%, the weakest performer of the day.
Nasdaq sees tech stock retreat
Week-to-date, energy and materials have posted the biggest gains of over 5% each. The Wells Fargo Investment Institute (WFII) suggests that long-term investors should consider taking advantage of pullbacks in the market. Scott Wren, senior global market strategist, stated, “We believe the potential for more attractive entry points in both equities and fixed income could materialize in the coming weeks and months.” WFII’s year-end target for the S&P 500 is between 6,500 and 6,700.
The dollar index dipped 0.1% to 108.98. The greenback weakened 0.8% against the yen to trade at 155.19, while it was flat against the British pound at 1.22 and up 0.1% versus the euro at 1.03. Several stocks made significant moves midday.
Netflix saw a 1% increase following an upgrade from Seaport Global Advisors. UnitedHealth dropped more than 4% after missing analysts’ revenue expectations, despite beating earnings estimates. DigitalOcean rose about 3% following an upgrade by Morgan Stanley.
Materials stocks are poised to finish the week with their biggest gains in over a year, led by Freeport-McMoRan and Newmont Corporation. Target’s shares fell 3% despite raising its same-store sales guidance for the fourth quarter following a strong holiday season.
