Traders work on the trading floor of the New York Stock Exchange (NYSE) on December 11, 2023 in New York City, United States.
Brendan McDermid | Reuters
The Dow Jones Industrial Average had its worst trading day in more than a year late Thursday, with index futures little changed.
Futures and 30 stocks in the Dow Jones Index Hovering around the flat line. S&P 500 Index Futures rose 0.04%, while Nasdaq 100 Futures It fell back 0.02%.
In after-hours trading, Intuit shares fell 7% on soft guidance for the quarter. Ross Stores reported revenue and profit growth in the first quarter.
Shares of chipmaker Nvidia rose more than 9% in Thursday trading, helped by strong guidance as well as improved earnings and a 10-for-1 stock split. Nvidia has become a key leader in the broader market and the de facto leader of the so-called “Big Seven”.
However, the rise of artificial intelligence darlings has not helped the market, with more than 400 stocks on the market S&P 500 Index The day ended lower. The broader market index fell 0.74%, while Nasdaq Index down 0.39%. this Dow Chemical The company’s stock price fell 1.53%, its worst trading day since March 2023, dragged down by a 7.6% drop in Boeing’s stock price.
“Markets tend to take a breather heading into the long weekend,” said Jamie Cox, managing partner at Harris Financial Group. “The Fed minutes provided a catalyst that even Nvidia couldn’t bring to the table. Markets are refocusing on the positives.” Indeed, at recent meetings, central bank policymakers expressed concern about the lack of progress in curbing inflation.
Strong economic data on Thursday further dampened investor hopes for a rate cut from the Federal Reserve. May services and manufacturing data exceeded economists’ expectations, while initial jobless claims for the week ended May 18 were 215,000. Economists surveyed by Dow Jones expected the number to be 220,000.
To that end, the S&P 500 is down 0.7% on the week, while the Dow Jones is expected to drop about 2.4%. The Nasdaq outperformed the broader market, inching up 0.3%.
On Friday, traders will focus on the durable goods report for April and the University of Michigan Consumer Sentiment Index for May.
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