Market Pulse: Stocks Ease Back as AI Optimism Wanes
As investors await more details on President Trump’s tariff plans, US stocks pulled back on Thursday, easing off their recent record-breaking streak. The S&P 500 hovered above the flatline, while the Dow Jones Industrial Average traded 0.3% higher, with a record not far off. Meanwhile, the Nasdaq Composite fell 0.2% as tech stocks struggled to regain momentum.
Tech Stocks Take a Hit
Nvidia shares dropped after its supplier SK Hynix flagged uncertainty about chip demand this year, weighing on other related stocks. The comments sparked concerns about the outlook for semiconductor demand, causing chip stocks to fall across the board.
Earnings Season Heats Up
GE Aerospace shares popped after the jet engine maker announced plans to raise share buybacks to $7 billion. In contrast, American Airlines stock slid after a downbeat 2025 profit forecast, while Alaska Airlines shares rose thanks to a smaller-than-expected first quarter loss forecast.
Jobless Claims Rise
US jobless claims increased by 6,000 to 223,000, official figures released on Thursday showed. Economists had expected a reading of 220,000 for the week.
Bitcoin Gets a Boost
Bitcoin rose after Republican Sen. Cynthia Lummis said she will chair the Senate Banking Subcommittee on digital assets. The token moved up to about $105,000 at around 10:50 a.m. ET.
AI Takes Center Stage at Davos
At the World Economic Forum, leaders agree that artificial intelligence is powerful and starting to impact business. However, they disagree on whether AI is already out of control and beyond regulation. HPE CEO Antonio Neri believes enterprises are smart and can harness AI’s potential.
Earnings Disappointments
Electronic Arts stock tumbled 15% after the game publisher said quarterly bookings fell to roughly $2.22 billion, missing analyst expectations. The decline was due to the poor performance of two of its video games.
Markets Await Trump’s Speech
Investors are waiting for President Trump’s remote speech at the World Economic Forum in Davos later Thursday for more insight into his trade policy. Eyes are also on earnings to potentially buoy markets, after Netflix set the tone on Wednesday.
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