Stocks moved lower in early trading Thursday, one day after major indexes posted their first gains of the week, as the market struggles to recover from a recent slump sparked by concerns about the health of the economy.
The S&P 500 and tech-heavy Nasdaq Composite were down 0.3% and 0.6%, respectively, in recent trading, while the Dow Jones Industrial Average slipped 0.2%. The S&P 500 and Nasdaq Composite posted solid gains on Wednesday following an encouraging reading on consumer prices, as the market took a breather from a sell-off that has erased the big post-election gains that major indexes had recorded.
Entering today’s session, the S&P 500 was 8.9% below its record closing high set just three weeks ago, while the Dow and Nasdaq were down 8.1% and 12.5%, respectively, from their December all-time highs. Investor sentiment has soured amid uncertainty about the potential impact of policies coming from the Trump White House, notably tariffs, and concerns about a slowdown in the economy.
Market participants were digesting fresh economic data released this morning. The Producer Price Index, a key measure of inflation at the wholesale level, showed that prices held steady in February, compared with the 0.3% increase economists had expected. The cooler-than-anticipated PPI reading, on one hand, is a positive sign that the Federal Reserve’s efforts to stamp out inflation are working, though it may also raise fears that economic activity is slowing.
Shares of the world’s largest technology companies, which led yesterday’s rally, were mixed early Thursday. EV maker Tesla (TSLA), which has lost more than half its value since hitting a record high in December, was down nearly 3%, while Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) and Meta Platforms (META) also lost ground. AI chipmaker Nvidia (NVDA) was up 1.5%, while rival Broadcom (AVGO) rose nearly 1% and Microsoft (MSFT) inched higher.
Adobe (ADBE) shares were down 11%, leading S&P decliners, after the software provider reported stronger-than-expected quarterly results but issued disappointing guidance.
Intel (INTC) was the big gainer this morning, with shares rising 17%, after the beleaguered chipmaker announced late Wednesday that former board member and chip industry veteran Lip-Bu Tan had been named CEO.
The yield on the 10-year Treasury note, which has fallen sharply in recent weeks amid the mounting concerns about the economy, were up slightly at 4.34% this morning. The yield, which affects borrowing costs on all sorts of loans, was trading below 4.20% earlier this week.
Bitcoin was holding steady at around $82,200 in recent trading. Gold futures were up 0.5% at $2,960 an ounce, approaching record-high levels, while West Texas Intermediate futures, the U.S. crude oil benchmark, fell 0.8% to $67.15 per barrel.
