WASHINGTON (dpa-AFX) - Stocks initially extended their recent upward trend in early trading on Thursday but have given back ground over the course of the session. The major averages have pulled back well off their highs of the session.
Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 20.19 points or 0.1 percent at 22,775.35, the S&P 500 is down 12.05 points or 0.2 percent at 6,699.15 and the Dow is down 153.45 points or 0.3 percent at 46,287.65.
The initial upward move partly reflected optimism about the artificial intelligence trade, which contributed to strength among tech stocks.
AI darling and market leader Nvidia (NVDA) has pulled back off its best levels but remains up by 1.4 percent, while fellow AI player Advanced Micro Devices (AMD) is surging by 3.0 percent.
The strength among AI stocks comes after OpenAI reportedly completed a deal placing a $500 billion valuation on the company.
With the sale of about $6.6 billion worth of stock by current and former employees, the ChatGPT owner has surpassed Elon Musk's SpaceX as world's most valuable privately-owned company.
'Reports suggest there was appetite for nearly twice as many as the actual number of shares on offer,' said Russ Mould, investment director at AJ Bell.
However, buying interest waned shortly after the start of trading amid lingering concerns about the economic impact of the ongoing U.S. government shutdown.
Traders may have subsequently looked to cash in on the recent strength in the markets, which lifted the Nasdaq and the S&P 500 to new record intraday highs in early trading.
Due to the shutdown, the releases of reports on weekly jobless claims and factory orders that were scheduled for this morning have been indefinitely postponed.
Sector News
Gold stocks have pulled back sharply along with the price of the precious metal, with the NYSE Arca Gold Bugs Index plunging by 2.7 percent after ending the previous session at a fourteen-year closing high.
Profit taking is also contributing to significant weakness among pharmaceutical stocks following a two-day surge, dragging the NYSE Arca Pharmaceutical Index down by 1.4 percent. The index ended Wednesday's trading at its best closing level in almost seven months.
Energy stocks are also seeing notable weakness amid a continued decrease by the price of crude oil, while semiconductor stocks continue to turn in a strong performance amid the AI optimism.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. While Japan's Nikkei 2225 Index advanced by 0.9 percent, Hong Kong's Hang Seng Index surged by 1.6 percent.
Most European stocks have also moved to the upside on the day. The German DAX Index and the French CAC 40 Index are jumping by 1.2 percent and 1.1 percent, respectively, although the U.K.'s FTSE 100 Index has bucked the uptrend and fallen by 0.3 percent.
In the bond market, treasuries have climbed back near the unchanged line after seeing initial weakness. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.102 percent.
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