The major U.S. stock indices ended lower on Thursday, breaking a recent winning streak. The S&P 500 slipped 0.21% to 5,937.34, the tech-heavy Nasdaq Composite fell 0.89% to 19,338.29, and the Dow Jones Industrial Average dropped 68.42 points, or 0.16%, to 43,153.13. Shares of Apple fell 3.7% on Thursday, marking the stock’s worst day since August 5, 2024, when it plunged 4.8%.
Other tech giants also experienced declines, contributing to the Nasdaq’s poor performance. Earlier in the day, stocks appeared poised for gains on the back of strong corporate earnings. For instance, Morgan Stanley beat earnings expectations, sending its stock up 4%.
However, shares of UnitedHealth fell more than 4% despite beating earnings estimates, after the company missed revenue expectations. Keith Buchanan, senior portfolio manager at Globalt Investments, observed, “There’s some heaviness and almost even exhaustion to this market, as we all try to give this bull market another leg to go and see what fuels the next upside moment. Earnings have started out with the banks definitely being a positive, but it seems there’s going to have to be more than that.”
The market’s mixed performance follows a strong session on Wednesday, which saw the Dow climb more than 700 points, while the S&P 500 and Nasdaq rallied 1.8% and 2.5%, respectively, driven by a moderate improvement in core inflation and strong earnings from major banks.
WTI Crude prices have risen about 2.8% week-to-date, positioning for a fourth consecutive week of gains – the first since July 1, 2024. Brent crude has climbed 1.9% this week, also on track for its fourth consecutive weekly gain.
Nasdaq declines with tech under pressure
The utility sector was the best-performing on Thursday, jumping 2.3%, while the consumer discretionary sector lagged, down 1%. Week-to-date, energy and materials sectors posted notable gains of more than 5% each. Wells Fargo Investment Institute suggested that more attractive entry points for long-term investors could materialize in the coming weeks.
Scott Wren, senior global market strategist, noted, “We favor using pullbacks like these to reallocate cash and short-term instruments into equity positions,” recommending large-cap domestic stocks. The dollar index inched down 0.1% to 108.98 on Thursday. The greenback weakened 0.8% against the yen, traded flat against the British pound at 1.22, and edged up 0.1% versus the euro at 1.03.
Shares of Netflix added 1% following an upgrade from Seaport to buy from neutral. First Solar rose after Morgan Stanley upgraded its rating, which also boosted the stock performance. The materials sector is poised to achieve its best weekly gains since November 2023, driven by significant performances from leading stocks in the sector.
Despite raising its fourth quarter sales forecast, Target saw its stock drop 3%. The retailer’s profit outlook remained unchanged, which appeared to dampen investor enthusiasm. The markets will be closely watching upcoming earnings reports and economic data to gauge the health of corporate America and the broader economy heading further into 2025.
