Echo Van
(Reuters) – Stocks and the Nasdaq closed lower on Thursday as market leader Nvidia (NASDAQ:) retreated from earlier gains while investors weighed the latest economic data and comments from Federal Reserve officials to determine the timing of interest rate cuts this year. .
Earlier, the S&P 500 hit the crucial 5,500 mark for the first time in history, a year-end target that many brokerages had predicted.
The Nasdaq ended a seven-session streak of record closing highs.
Nvidia shares fell 3.54% after rising earlier in the session. On Tuesday, the chip maker dethroned Microsoft (NASDAQ:) to become the world’s most valuable public company.
Shares of Dell (NYSE:) and Super Micro Computer (NASDAQ:) also fell 0.42% and 0.26%, respectively, after initially rising following news that they had received orders for servers for Elon Musk’s artificial intelligence startup.
The number of Americans filing new claims for unemployment benefits fell last week, but the latest data showed the total number of people receiving benefits reached the highest level since January, indicating the U.S. labor market continues to cool.
Another set of data showed U.S. single-family home construction fell in May amid continued high mortgage rates.
“The news we received today was another negative development in the economy,” said Tom Martin, senior portfolio manager at Globalt in Atlanta.
“In the jobs report, you get those (unemployment) claims that aren’t terrible, but it’s … getting into territory that isn’t necessarily bad anymore.”
Energy and utilities rose the most among the 11 S&P 500 industry indexes, rising 1.86% and 0.89%, respectively, while technology led the decline.
“There is still a lot of noise around supply and demand, but it is not that strong. But there’s just been … a desire to get back into the area where we need energy in the future,” Martin said.
Meanwhile, Minneapolis Fed President Neel Kashkari said it will take a year or two to return inflation to 2% as wage growth may still be too high, raising concerns that interest rates will remain elevated for a long time.
Money markets currently see a 58% chance of the U.S. central bank cutting rates by 25 basis points in September, according to FedWatch LSEG.
The S&P 500 rose 299.90 points, or 0.77%, to 39,134.76, while the S&P 500 lost 13.86 points, or 0.25%, to 5,473.17 and lost 140.64 points. , or 0.79%, to 17,721.59.
Kroger (NYSE:) shares fell 3.27% following a cautious tone on near-term consumer spending as the company reiterated full-year sales and profit guidance despite beating first-quarter estimates.
Trump Media & Technology Group shares fell 14.56% due to potential dilution after the U.S. Securities and Exchange Commission declared effective the company’s application to resell certain shares and warrants, raising about $247 million. revenue.
On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.03 to 1. On the New York Stock Exchange, there were 248 new highs and 118 new lows.
The S&P 500 posted 31 new 52-week highs and 6 new lows, while the Nasdaq Composite posted 39 new highs and 217 new lows.
Volume on U.S. exchanges was 11.98 billion shares, compared with the full-session average of 13.51 billion over the past 20 trading days.