Market Volatility: Tech Stocks Struggle as Investors Await Trump’s Tariff Plans
The US stock market experienced a mixed day on Thursday, with the S&P 500 and Dow Jones Industrial Average trading relatively flat, while the Nasdaq Composite fell 0.4%. This pullback comes after a three-day winning streak that saw the benchmark index close in on a new all-time high.
Tech Stocks Lose Momentum
Nvidia, Apple, and Google-parent Alphabet led the decline in tech stocks, with shares dropping significantly. This reversal in fortunes comes after a strong performance on Wednesday, driven by optimism around President Trump’s AI push.
Tariff Uncertainty Weighs on Markets
Investors are still unclear about the timing and impact of Trump’s tariffs on major trading partners, which poses a risk to inflation and stock prices. The focus is now on Trump’s speech at the World Economic Forum in Davos, where he is expected to provide more insight into his trade policy.
Earnings in Focus
Earnings reports from major companies, including Netflix, GE Aerospace, and American Airlines, will be closely watched to see if they can provide a boost to the market. GE Aerospace shares surged after the company announced plans to raise share buybacks to $7 billion.
Airline Stocks Take a Hit
American Airlines stock plummeted nearly 8% after the carrier forecast a surprise loss for its first quarter, citing rising non-fuel expenses and changes to its corporate sales strategy. Alaska Airlines, on the other hand, saw its shares rise after reporting a smaller-than-expected first-quarter loss forecast.
Jobless Claims Rise
US jobless claims increased by 6,000 to 223,000, according to official figures released on Thursday. This is higher than the expected reading of 220,000.
Gaming Disappointment
Electronic Arts stock tumbled 15% after the company reported disappointing quarterly bookings, driven by poor performance of its soccer title and Dragon Age: The Veilguard. The company cut its bookings outlook for the 2025 fiscal year to a range of $7 billion to $7.15 billion.
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