U. S. stocks edged down from record highs on Thursday, pressured by a retreat in chipmakers after a strong rally. The S&P 500 and Nasdaq reached fresh peaks in morning trading, supported by lower oil prices amid optimism that a U. S.-Iran agreement could ease tensions and global crude supply. However, stocks dipped as the day progressed, with chip majors weighing on the main indexes.
U. S.-listed shares of Arm Holdings, for example, slid 10.8% due to worries about securing sufficient supplies for its new AI chip, overshadowing a strong earnings forecast. The Philadelphia SE Semiconductor index fell more than 2%, after jumping almost 60% this year. Investors are also awaiting Friday's nonfarm payrolls data, with economists anticipating an increase of 62,000 jobs in April, following a rebound of 178,000 in March.
The Dow Jones Industrial Average fell 176.08 points, or 0.35%, to 49,734.51. The S&P 500 lost 22.39 points, or 0.30%, to 7,343.95, and the Nasdaq Composite shed 41.02 points, or 0.16%, to 25,797.93. The recent rally in technology and AI shares has helped push U. S. stocks to new highs, driven by strong demand for artificial intelligence and a robust earnings season.
Upbeat economic data has also eased concerns about a slowing U. S. economy. Recent data showed that the number of Americans filing for unemployment benefits rose less than expected, indicating a resilient labor market. Investors continue to expect the Federal Reserve to hold interest rates steady through the end of the year, influenced by the strong labor market and elevated energy prices.
