Highlights
Major stock indexes lost ground Thursday, led by weakness for a second day in the AI momentum trade, somewhat offset by strength in cyclicals where some investors shifted funds.
The Dow Jones industrial average eased 0.2 percent while the S&P 500 lost 0.5 percent and the Nasdaq was down 1.5 percent. Bond yields and the dollar rose while oil prices declined.
Alphabet was a notable decliner after saying the new version of its Gemini AI service would be delayed. That depressed communications services while technology suffered from a selloff for a second day in chip stocks. On the positive side, consumer staples, energy, real estate and health care outperformed. UnitedHealth delivered positive results to lead the day’s winners.
Somewhat hawkish seeming comments from Federal Reserve officials pressured bond yields higher, another negative for the AI momentum trade. US economic indicators came in mixed, with the Philadelphia Fed’s manufacturing report much stronger than expected, retail sales in line with expectations, and jobless claims down more than expected.