The S&P 500 also fell 0.7%, while the Nasdaq turned out to be the outperformer, shedding 0.4%. Losses in the Nasdaq were kept in check by Nvidia, which ended with gains of over 9% and above the $1,000 mark, after reporting strong earnings and issuing an equally strong guidance. Both the S&P 500 and Nasdaq reversed from record highs made earlier in the session on Thursday.
More than 400 stocks on the S&P 500 ended with losses, with IT turning out to be the only positive among the sectoral indices.
Stronger-than-expected economic data dampened sentiment as investors further cut their odds for a rate cut by the US Federal Reserve in September. Initial jobless claims for the week that ended on May 18 came in at 2.15 lakh, while economists were working with a 2.2 lakh number. Additionally, services and manufacturing data for May also topped expectations, according to flash surveys released by S&P Global on Thursday.
According to the CME FedWatch tool, the probability of the Fed cutting rates in September is now down to 51%, down from 58% on Wednesday and nearly 68% last week. When the probability falls below 60%, it is believed that the Fed is unlikely to take any form of action.
The market has “some loose footing,” Piper Sandler chief market technician Craig Johnson wrote in a Thursday note. “This market’s strange mix of leadership, combined with breakdowns in transportation stocks and mediocre breadth readings, makes us not so confident that a new leg higher will be sustained from current levels,” he added.
Besides stocks, treasuries yields on the two-year note climbed seven basis points to 4.94%, while the 10-year advanced five basis points to 4.48%. The US Dollar strengthened, Bitcoin fell over 4%. Oil and Gold prices also retreated.
(With Inputs From Agencies.)
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
