US stock markets retreated on Thursday with investors poring over another batch of earnings reports from companies. Names in the artificial intelligence market were under pressure amid worries over eye-watering valuations.
The S&P 500 dropped 1%. The Dow Jones Industrial Average fell 449 points, or 1%, as of 11:30 a.m. Eastern time. The Nasdaq composite fell 1.6%. Nvidia fell 2.4% and Microsoft slipped 1.9%. Amazon fell 2.6%.
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Corporate earnings and forecasts have been the big focus all week. The latest round of results and statements from executives could help shed some light on the condition and path ahead for the economy amid a lack of broader information on inflation, employment and retail sales because of the ongoing government shutdown.
Focus on Tesla shareholder meeting
One of the key focuses will be the Tesla shareholder meeting at 4 pm ET. The main agenda is a vote on the proposed trillion-dollar pay package for Elon Musk. There are worries that Musk might quit as CEO if this plan gets junked.
A quick look at the markets
{{/usCountry}}One of the key focuses will be the Tesla shareholder meeting at 4 pm ET. The main agenda is a vote on the proposed trillion-dollar pay package for Elon Musk. There are worries that Musk might quit as CEO if this plan gets junked.
A quick look at the markets
{{/usCountry}}It has been a wobbly week for major indexes, which set record highs last week. The broader stock market has had a record-setting year, but that has raised worries that stocks could be overvalued. Those concerns are even more focused on big technology companies that have been leading the market higher amid the focus on artificial intelligence advancements.
The latest round of earnings is being closely monitored to gauge whether the stock market’s big values are justified. The results are also helping to fill in gaps in information because of the U.S. government shutdown, which is now the longest on record.
Other markets and treasury yields
European markets fell after a divided Bank of England kept its main interest rate unchanged. Asian markets closed higher.
Treasury yields moved lower in the bond market. The yield on the 10-year Treasury fell to 4.09% from 4.16% late Wednesday. The yield on the two-year Treasury fell to 3.56% from 3.63% late Wednesday.
(With AP inputs)