The S&P 500 ended lower on Thursday, with Intel and other chip stocks retreating after a recent rally, while uncertainty around US-Iran peace talks weighed on the wider market. US-listed shares of Arm Holdings tumbled, and Intel and Advanced Micro Devices both declined about 3%. Oil prices edged lower, trading around US$100 per barrel. Nvidia and Microsoft both climbed almost 2%.
Volume on US exchanges was heavy, with 18.3 billion shares traded, compared to an average of 17.5 billion shares over the previous 20 sessions. BENGALURU: The S&P 500 ended lower on Thursday, with Intel and other chip stocks retreat ing after a recent rally, while uncertainty around US-Iran peace talks weighed on the wider market.
US-listed shares of Arm Holdings tumbled as worries about the company's ability to secure sufficient supplies for its new AI chip overshadowed a strong earnings forecast. Intel and Advanced Micro Devices both declined about 3%, giving back some of their gains from earlier this week. The PHLX chip index dropped 2.7%, trimming its gain so far this quarter to 47%.
The United States and Iran were edging toward a temporary agreement to halt their war, sources and officials said, with Tehran reviewing a proposal that would stop the fighting but leave the most contentious issues unresolved.
'You can have a string of days like this, and that's not going to take away from the fact that this has been a rip-roaring quarter of recovery, driven by fundamentals,' said Mike Dickson, head of portfolio management at Horizon Investments in Charlotte, North Carolina. Oil prices LCOc1, CLc1 edged lower, trading around US$100 per barrel. O/R Nvidia and Microsoft both climbed almost 2%, underscoring investor confidence in Wall Street's heavyweight AI companies.
The S&P 500 declined 0.38% to end the session at 7,337.11 points. The Nasdaq declined 0.13% to 25,806.20 points, while the Dow Jones Industrial Average declined 0.63% to 49,596.97 points. Nine of the 11 S&P 500 sector indexes declined, led lower by materials, down 1.83%, followed by a 1.78% loss in energy. Volume on US exchanges was heavy, with 18.3 billion shares traded, compared to an average of 17.5 billion shares over the previous 20 sessions.
A relentless rally in technology and AI shares has helped push US stocks to record highs in recent days as investors cheer signs of strong demand for artificial intelligence and a robust earnings season. S&P 500 companies are on track for their strongest profit growth in more than four years. Upbeat economic readings in recent weeks have also helped allay concerns about the economy. With Thursday's decline, the S&P 500 remains up 7% in 2026.
Data showed the number of Americans filing claims for unemployment benefits rose less than expected last week. After a strong private payrolls report on Wednesday, investors are awaiting more comprehensive nonfarm payrolls data on Friday, with jobs seen increasing by 62,000 in April after rebounding 178,000 in March, according to a Reuters poll of economists.
Traders continued to bet the US Federal Reserve would hold interest rates steady through the end of the year due to a resilient labour market and elevated energy prices. Cleveland Fed President Beth Hammack said she expects the central bank to hold interest rates steady well into the future as it navigates a climate of considerable uncertainty. Datadog soared 31% after the cloud-monitoring company raised its full-year earnings forecast. Cybersecurity companies CrowdStrike CRWD.
O jumped 8% and Palo Alto Networks PANW. O added 7%. Whirlpool slumped 12% after the home-appliance maker missed first-quarter sales estimates and suspended its dividend. Declining stocks outnumbered rising ones within the S&P 500 by a 1.8-to-one ratio.
The S&P 500 posted 18 new highs and 11 new lows; the Nasdaq recorded 132 new highs and 89 new lows.
US-Iran Peace Talks Chip Stocks Retreat Oil Prices Lower Nvidia Microsoft Intel Advanced Micro Devices Arms Holdings S&P 500 Nasdaq Dow Jones Industrial Average Materials Energy Volume On US Exchanges Heavy Trading
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