Wall Street experienced a pause on Thursday as U.S. stocks and gold prices retreated from recent highs. The S&P 500 declined by 0.3%, marking its second loss in the last ten days. The Dow Jones Industrial Average saw a drop of 243 points, or 0.5%, while the Nasdaq composite decreased by 0.1%.
Gold Prices and Treasury Yields
Gold also fell, contributing to the stock market’s downturn. It lost 2.4%, dropping below $4,000 per ounce. Meanwhile, Treasury yields remained stable in the bond market, as investors reassessed their positions after recent surges.
Market Drivers and Concerns
These market shifts come as investors reflect on the impressive increases that have occurred, especially with a 35% rise in the S&P 500 since April. Concerns are growing that stock prices have escalated beyond reasonable valuations, particularly in sectors driven by artificial intelligence.
Major Stock Movements
- Dell Technologies: Down 5.2%, despite a notable rise earlier in the week related to AI growth discussions.
- Tesla: Fell 0.7% following a preliminary evaluation of its “Full Self-Driving” system by the National Highway Traffic Safety Administration.
- Delta Air Lines: Increased by 4.3% after reporting higher-than-expected summer profits and strong forecasts for the final quarter of the year.
- PepsiCo: Rose 4.2% due to better profit results for the latest quarter and improved business momentum in North America.
- Akero Therapeutics: Surged 16.3% following a buyout announcement from Novo Nordisk, potentially valued at $5.2 billion.
- MP Materials: Gained 2.4% after China’s export curbs on rare earth materials.
- Costco Wholesale: Increased by 3.1%, reporting an 8% revenue growth in September compared to last year.
Market Summary
On the day, the S&P 500 dropped 18.61 points to settle at 6,735.11. The Dow Jones Industrial Average decreased 243.36 to 46,358.42, while the Nasdaq composite slipped 18.75 to close at 23,024.63.
Global Market Trends
In international markets, European indexes presented mixed results, influenced by a 15.4% decline in Italy’s Ferrari shares after disappointing financial forecasts. Conversely, Shanghai stocks climbed 1.3% post-holiday trading, and Japan’s Nikkei 225 rose by 1.8%. Notably, SoftBank Group surged 11.4% after announcing a $5.4 billion acquisition of ABB’s robotics unit.
Treasury Yields Update
In the bond market, the yield on the 10-year Treasury rose slightly to 4.14%, up from 4.13% the previous day. Market watchers are keenly aware of these shifts as they continue to assess potential interest rate cuts by the Federal Reserve to support the economy.
