After recovering from an initial move to the downside, stocks showed a lack of direction over the course of the trading session on Thursday. The major averages bounced back and forth across the unchanged line before eventually closing lower.
With the lower close on the day, the major averages extended the sharp pullback seen on Wednesday. The Nasdaq slid 94.98 points or 0.5 percent to 17,804.03, the Dow fell 155.09 points or 0.4 percent to 42,299.70 and the S&P 500 dipped 18.89 points or 0.3 percent to 5,693.31.
The lower close on Wall Street came amid ongoing concerns about President Donald Trump’s trade policies after he announced plans to impose 25 percent tariffs on auto imports.
Selling pressure was somewhat subdued, however, as the news may already have been priced into the markets after the White House revealed Trump would be making the announcement during the trading day on Wednesday.
Trump also told reporters on Wednesday that the reciprocal tariffs set to take effect on U.S. trade partners next week will be “very lenient.”
However, Trump also threatened in an early morning Truth Social post that he would impose far larger tariffs than currently planned “if the European Union works with Canada in order to do economic harm to the USA.”
Traders may also have been reluctant to make significant moves ahead of the release of the Federal Reserve’s preferred readings on consumer price inflation on Friday.
On the U.S. economic front, the Commerce Department released a report showing the economy grew slightly faster than previously estimated in the fourth quarter of 2024.
The Commerce Department said gross domestic product surged by 2.4 percent in the fourth quarter compared to the previously reported 2.3 percent jump. Economists had expected the pace of GDP growth to be unrevised.
A separate report released by the National Association of Realtors showed pending home sales saw a significant rebound in the month of February after plunging to an all-time low in January.
Sector News
Semiconductor stocks showed a significant move to the downside on the day, dragging the Philadelphia Semiconductor Index down by 2.1 percent.
Considerable weakness was also visible among networking stocks, as reflected by the 1.9 percent slump by the NYSE Arca Networking Index.
Airline, computer hardware and financial stocks also ended the day notably lower, while gold stocks moved sharply higher along with the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index fell by 0.6 percent, while China’s Shanghai Composite Index inched up by 0.2 percent and Hong Kong’s Hang Seng Index rose by 0.4 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index slid by 0.7 percent, the French CAC 40 Index decreased by 0.5 percent and the U.K.’s FTSE 100 Index dipped by 0.3 percent.
In the bond market, treasuries moved lower in reaction to the latest U.S. economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.1 basis points to 4.369 percent.
Looking Ahead
The Federal Reserve’s preferred readings on consumer price inflation, which are included in a report on personal income and spending, are likely to in the spotlight on Friday.
Business News
U.S. Stocks Fluctuate Before Closing Mostly Lower
2025-03-27 20:12:22
