Wall Street’s major indices closed with a mixed performance on Thursday, as market leader Nvidia relinquished early gains amid investor scrutiny of the latest economic data. The S&P 500 dipped 0.3%, shedding 13.86 points to settle at 5,473.17, after reaching an all-time high before the Juneteenth holiday break. The Nasdaq Composite also retreated from its record, declining 0.8%, or 140.64 points, to 17,721.59.
In contrast to the downward trend, the Dow Jones Industrial Average climbed 0.8%, or 299 points, to reach 39,134.76.
AI powerhouse Nvidia experienced a 3.5% drop, despite initial gains. The chipmaker recently surpassed Microsoft to become the most valuable public company. Shares of Dell and Super Micro Computer also declined after earlier surges on news of receiving server orders for Elon Musk’s AI venture.
Kroger shares tumbled over 3% after releasing a cautious outlook on near-term consumer spending, even as the grocery chain affirmed its full-year sales and profit forecasts and surpassed first-quarter expectations.
Trump Media & Technology Group saw its shares plummet 14.5% following the SEC’s clearance for the company to issue more shares, potentially diluting the stock’s value.
The 10-year Treasury yield ascended to 4.25% from 4.22% on Tuesday, while the two-year yield, closely reflecting Federal Reserve expectations, rose to 4.73% from 4.71%.
Economic reports released on Thursday revealed a decrease in new unemployment claims last week, although the total number of unemployed individuals reached its highest level since January, signaling a cooling job market. Additionally, single-family homebuilding declined in May amidst persistently high mortgage rates.
Wall Street is increasingly optimistic about a slowdown in U.S. economic growth, potentially easing inflationary pressures and convincing the Federal Reserve to lower its main interest rate later this year. Such a move would alleviate economic strain and bolster investment prices.
