Highlights
Earnings news hurt technology shares Thursday while the broader market recovered from an early selloff to end flat to narrowly mixed. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 eased 0.1 percent, and Nasdaq lost 0.7 percent. US Treasury yields and the dollar declined. Oil prices rallied as tensions rose with Iran.
Microsoft, heavily weighted in the stock indexes, was the day's featured loser, down a remarkable 10 percent, as the market recoiled from concern that heavy AI investment would take a long time to show a return, a worry that depressed chipmakers and AI-linked shares more generally. Tesla was another notable heavyweight seeing a selloff as the market shrank from the firm's declared intention to become an AI and robotics power. IBM and Meta were notable winners, on the other hand, as investors reacted favorably to their quarterly results and guidance.
Energy shares had a big day as oil prices spiked on the latest ramp up in threats of military intervention from President Trump against Iran's clerical leaders. Travel & leisure, telecom, banks, airlines, and railroads were among the day's best performers.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.