Stock Market Rally Hits a Speed Bump
The US stock market’s upward momentum came to a halt on Thursday, as the S&P 500 approached record highs. Despite President Trump’s deregulation plans and a massive AI investment announcement, which had boosted stock prices earlier in the week, investors took a breather.
Deregulation and AI Investments Fuel Optimism
Trump’s plans to reduce regulatory hurdles have injected a sense of optimism into the market, driving stock prices higher. Additionally, a $500 billion investment in AI infrastructure has given technology stocks a significant boost. However, the Nasdaq 100 surrendered some of its gains on Thursday, declining by about half a percent.
Earnings Season Takes Center Stage
As investors digest the latest jobless claims data, which showed a slight increase to 223,000, their focus is shifting to fourth-quarter earnings results. So far, 14% of S&P 500 companies have reported, with 78% beating profit estimates by a median of 6%. The big earnings show will begin next week, with tech giants like Apple, Meta Platforms, and Tesla set to report.
Federal Reserve Meeting Looms
Investors are also bracing for the Federal Reserve’s policy meeting next week. While rates are expected to remain unchanged, comments from Fed officials could impact markets if they suggest a shift in the path of interest rates.
Market Snapshot
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
- S&P 500: 6,082.96, down 0.06%
- Dow Jones Industrial Average: 44,251.01, up 0.2% (+85.19 points)
- Nasdaq composite: 19,933.34, down 0.4%
Other Market Developments
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 0.05% to $75.48 a barrel.
- Brent crude, the international benchmark, increased 0.10%, to $79.08 a barrel.
- Gold declined 0.75% to $2,750.00 an ounce.
- The 10-year Treasury yield jumped 5 basis points to 4.665%.
- Bitcoin fell 1.07% to $102,556.
Leave a Reply