U.S. stocks slumped Thursday, retreating from a bid for a new record, as AI optimism faded and markets awaited further details on President Donald Trump’s tariff plans.
The S&P 500 (^GSPC) snapped a three-day winning streak and fell nearly 0.2%, with the benchmark index closing Wednesday on the brink of hitting a new all-time high. The Dow Jones Industrial Average (^DJI) has remained almost flat, and is still within range of breaking records.
Meanwhile, the Nasdaq Composite Index (^IXIC) fell 0.5% as tech stocks struggled to regain the momentum that drove the previous day’s gains. Shares of Nvidia (NVDA) fell as fellow mega-cap technologists Apple (AAPL) and Google’s parent company Alphabet (GOOG, GOOGL) also fell in rankings.
Investors are still digesting Trump’s early policy commitments. The AI push has given a boost to tech companies, but it remains unclear when the outline of tariffs on major trading partners will go into effect, posing a risk to inflation and stock prices. Focus is now on President Trump’s speech at the World Economic Forum in Davos later Thursday for further insight into his “shock and awe” trade policies.
Yahoo Finance is in Davos. Find the latest information from the world’s business leaders here.
Shares of Amazon (AMZN) and Tesla (TSLA) fell slightly following business changes by Canadian tech leaders, a key tariff target of President Trump. The e-commerce giant will close a warehouse in Quebec, eliminating about 1,700 jobs, while Tesla plans to significantly raise prices on all EV models it sells in Canada.
After Netflix (NFLX) set the tone, all eyes are on the earnings that will fuel the market. GE Aerospace (GE) stock soared after the jet engine maker reported strong full-year profits and announced plans to buy back stock and increase its dividend. However, American Airlines (AAL) stock prices fell amid lower earnings forecasts for 2025. Meanwhile, Alaska Airlines (ALK) stock rose after the airline announced a smaller-than-expected first-quarter loss.
U.S. jobless claims rose by 6,000 to 223,000, according to the latest government data released Thursday morning. Economists had expected 220,000 cases.
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