US stocks faltered on Thursday, pulling back from a bid for fresh records as AI optimism waned and markets waited for more detail on President Donald Trump’s tariff plans.
The S&P 500 (^GSPC) was little changed, coming off a three-day win streak that saw the benchmark index close Wednesday on the cusp of setting a new all-time high. The Dow Jones Industrial Average (^DJI) traded 0.2% higher, with a record high not far off.
Meanwhile, The Nasdaq Composite (^IXIC) fell 0.4% as tech stocks struggled to regain the momentum that propelled the previous day’s gains. Nvidia (NVDA) shares dropped, as fellow megacap techs Apple (AAPL) and Google-parent Alphabet (GOOG, GOOGL) also lost ground.
Investors are still digesting Trump’s early-days policy charge, which brought an AI push that invigorated tech names but left unclear when the outlined tariffs on big trading partners — a risk for inflation and stocks — might hit. The focus is now on Trump’s speech at the World Economic Forum in Davos later Thursday for more insight into his trade policy.
Yahoo Finance is on the ground at Davos. See the latest from the world’s business leaders here.
Shares in Amazon (AMZN) and Tesla (TSLA) edged lower after business shifts by the tech leaders in Canada, a prime tariff target for Trump. The e-commerce giant will close its warehouses in Quebec, with a loss of about 1,700 jobs, while Tesla plans hefty price hikes on all its EV models sold in Canada.
Eyes are on earnings to potentially buoy markets, after Netflix (NFLX) set that tone on Wednesday. GE Aerospace (GE) shares popped after the jet engine maker said it will raise share buybacks to $7 billion. In air carriers, American Airlines (AAL) stock slid after a downbeat 2025 profit forecast, and Alaska Airlines (ALK) shares rose thanks to a smaller-than-expected first quarter loss forecast.
On the data front, 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.
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