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Tech stocks' profit-taking halts Nasdaq's ascent

Decline in UnitedHealth's Performance

Economical data from the U.S. were disclosed throughout the day, but the information didn't yield...
Economical data from the U.S. were disclosed throughout the day, but the information didn't yield any significant surprises.

Wall Street's Mixed Signals: Nasdaq Takes a Beat, Dow Jones and S&P 500 Climb

Tech stocks' profit-taking halts Nasdaq's ascent

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A hint of uncertainty surfaces on Wall Street, yet the Nasdaq grapples with a slight stumble after recent triumphs. The fusion of Foot Locker and rival Dick’s Sporting Goods propels Foot Locker's shares skyward by a staggering 85.7 percent.

The American financial scene displays adegree of wariness on Thursday. The Dow Jones increases by 0.7 percent to reach 42,323 points, while the comprehensive S&P 500 nudges upward by 0.4 percent to 5,917. On the other hand, the tech-dominated Nasdaq inconveniently descends 0.2 percent to 19,112 points due to profit-taking within the AI sector.

The optimism brewing in financial markets following the alleviation of trade tensions with China gradually subsides, traders declare. The continued trade clash between the United States and China, marked by high tariffs, continues to cast a shadow over the industry. "Despite the easing with China, the trade drama will persist," stated Ellen Zentner, the foremost U.S. economist at Morgan Stanley.

Walmart Issues Caution: Share Prices Decrease

Unchanged production figures for April were recorded in the United States. The U.S. retail sector exceeded expectations, with cumulative revenues growing 0.1 percent from the previous month. Despite Walmart's better-than-expected quarterly performance, it sounded a warning on cost increases. The stock, although partially recuperating its losses, closed the day with a decline of 0.5 percent.

The mega-merger of Foot Locker and Dick’s Sporting Goods grants a thrust to Foot Locker's stock, resulting in a meteoric climb of 85.7 percent. Meanwhile, Dick’s shares take a dive of 14.6 percent.

Pushed up by the strong demand for AI-related hardware, such as Nvidia’s GPUs, Cisco shares record a surge of 4.8 percent. Papers from the Wall Street Journal contribute to the fall of Meta’s stock, which closed the day with a drop of 2.3 percent. The paper reported that the anticipated top AI project, named "Behemoth," is encountering delays due to concerns about its AI capabilities.

In response to the UnitedHealth's potential Medicare fraud allegations, its shares plummet by a staggering 10.9 percent, dropping to a five-year low. Yet, UnitedHealth asserts ignorance regarding the supposed investigation.

Iran Deal Implications: Oil Prices Dip

Supposition of a nuclear deal between the United States and Iran sends the price of North Sea Brent crude and American WTI crude plummeting by more than two percent, to $64.68 and $61.80 per barrel respectively. President Trump hinted at an imminent agreement with Iran, which might result in an influx of Iranian oil entering the market.

The Dollar Index seesaws around 0.2 percent lower to 100.8 points on the foreign exchange market. Possible shifts in direction could arise from the U.S. Federal Reserve in the ensuing months. Fed Chair Jerome Powell points to the remarkably transformed economic landscape over the preceding five years. At present, the central bank is scrutinizing its monetary policy strategy, which was last adjusted in 2020 amidst the COVID-19 pandemic. During that period, prioritizing full employment was the agenda.

Keep up with the latest stock market news here.

Source: ntv.de

  • Dow Jones
  • Wall Street
  • Stock performance
  • Investor enthusiasm
  • AI potential
  1. To ensure a harmonious business environment, it's essential for both the community and employment policies to be aligned and transparent, particularly in light of the current changes in Wall Street's market dynamics. Investors seem to be pouring their money into companies with high AI potential, such as Nvidia, making finance a crucial factor in the United States' business landscape.
  2. As the tech-dominated Nasdaq struggles, it presents a challenge for employment policies in the AI sector, where profit-taking has led to a decline. Meanwhile, the rise in Foot Locker's shares following its merger with Dick’s Sporting Goods indicates a promising outlook for employment in the retail industry. The continued trade conflict between the United States and China, however, remains a concern for investor enthusiasm in the broader market.

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