US stocks closed slightly lower on Thursday after fluctuating between gains and losses. Investors assessed economic data and the Federal Reserve’s policy statement against tariff concerns.
Market Volatility
Selling pressure has intensified recently. Economic indicators suggest a cooling economy and weakening consumer sentiment as the Trump administration imposes reciprocal trade tariffs.
Equities rose in three of the past four sessions. The S&P 500 gained over 1% on Wednesday after the Fed kept interest rates unchanged. The central bank also forecasted two quarter-point interest rate cuts later this year, maintaining the same projection as three months ago.
The Fed sees slower economic growth and temporarily higher inflation.
Expert Insights
“It is very volatile. The news is very volatile,” said Stephen Massocca, senior vice president at Wedbush Securities. “The market is focused on it, and a lot will depend on upcoming developments.”
“We are setting a bottom, but I do not expect a sudden market surge,” he added.
Major Indices Performance
- The Dow Jones Industrial Average fell 11.31 points, or 0.03%, to 41,953.32.
- The S&P 500 lost 12.40 points, or 0.22%, to 5,662.89.
- The Nasdaq Composite dropped 59.16 points, or 0.33%, to 17,691.63.
Economic Indicators
Economic data showed a slight increase in weekly jobless claims. Outlook concerns persist due to government spending cuts, interest rate levels, and policy uncertainty.
The Conference Board reported that future economic activity declined by 0.3% in February after a 0.2% drop in January.
Market participants are pricing in 63 basis points of Fed cuts this year. LSEG data suggests a 71% probability of a 25-basis-point cut at the June meeting.
Sector Performance
Technology stocks were the weakest among the 11 major sectors. Meanwhile, energy stocks rose as crude prices surged nearly 2% following new Iran-related sanctions from the U.S.
Corporate Highlights
- Darden Restaurants shares jumped 5.77% after offering a positive tariff-related business outlook.
- Accenture shares fell 7.26%, marking their largest single-day drop in a year. The consultancy firm cited federal spending reductions causing delays and contract cancellations.
Declining issues outnumbered advancing ones by a 1.38-to-1 ratio on the NYSE and 1.72-to-1 on the Nasdaq.
The S&P 500 recorded 12 new 52-week highs with no new lows. The Nasdaq Composite posted 31 new highs and 102 new lows.
Market Volume
U.S. exchange volume reached 13.06 billion shares, below the 16.28 billion average of the past 20 trading days.
Tags: US stocks, market volatility, Federal Reserve, interest rates, economic indicators, technology sector, energy market, corporate earnings, stock performance
