Wall Street paused for a breather on Thursday, following Wednesday's big rally sparked by a softer-than-predicted December inflation report that fueled speculation on the Federal Reserve delivering interest rate cuts during the year.
By midday, stocks were little changed as attention shifted to the next major event: Donald Trump's inauguration as 47th U.S. president on Monday.
On the data front, December retail sales rose 0.4% from the previous month, a slower pace than November's 0.8% increase and below expectations of 0.6%. Jobless claims climbed by 16,000 to 217,000, slightly higher than the projected 210,000.
See Also: Cathie Wood Says Inflation Worries Dampen Expectations, Schiff Singles Out Wall Street For Swallowing Narrative Even As Prices Soar
The weaker data sent Treasury yields lower, with the 10-year yield slipping four basis points to 4.61%, extending the previous day's 14-basis-point decline.
Falling yields helped gold climb 0.9% to $2,970 per ounce, reaching a two-month high as investors moved toward safe-haven assets.
Semiconductor stocks stood out the best-performing industry, with the iShares Semiconductor ETF (NASDAQ:SOXX) gaining 1.8%. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) jumped more than 5% after delivering strong quarterly earnings, lifting the broader chip industry. Applied Materials Inc. (NASDAQ:AMAT) and ASML Holding N.V. (NASDAQ:ASML) advanced 7% and 6%, respectively.
Oil prices pulled back 2.6%, giving up part of Wednesday's 4% gain. Traders speculated that Trump's policies could ease sanctions on Russian energy exports as part of a broader effort to negotiate peace in Ukraine.
Bitcoin (CRYPTO: BTC) edged down 1% to $99,000, following a slight pullback across cryptocurrency markets.
Thursday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| S&P 500 | 5,958.43 | 0.1% |
| Dow Jones | 43,255.53 | 0.1% |
| Russell 2000 | 2,264.04 | 0.0% |
| Nasdaq 100 | 21,239.38 | 0.0% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) remained unchanged at $593.10.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) flattened at $432.18.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) was unchanged at $516.54.
- The iShares Russell 2000 ETF (NYSE:IWM) inched 0.1% to $224.31.
- The Utilities Select Sector SPDR Fund (NYSE:XLU) outperformed, up 2.1%; the Health Care Select Sector SPDR Fund (NYSE:XLV) lagged, down 0.5%.
Thursday’s Stock Movers
- Bank of America Corp. (NYSE:BAC) fell 2% following quarterly earnings. Peer Morgan Stanley (NYSE:MS) rose 2.7%.
- Other stocks reacting to earnings were UnitedHealth Group Inc. (NYSE:UNH), down 4.7%, Infosys Ltd. (NYSE:INFY), down 5.2%, PNC Financial Services Group Inc. (NYSE:PNC), down 2%, U.S. Bancorp (NYSE:USB), down 5.3%, M&T Bank Corporation (NYSE:MTB), down 2.8%, First Horizon Corp. (NYSE:FHN).
- Tesla Inc. (NASDAQ:TSLA) fell by 3.6% after the EV giant announced reduced selling prices on its Cybertruck, in a strategy to revive demand.
- Apple Inc. (NASDAQ:AAPL) dropped 3% after the European Commission's competition chief confirmed that the investigation into the company under the Digital Markets Act will move forward as scheduled, with enforcement anticipated by March 2024.
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