U.S. stocks ended lower on Thursday, with the S&P 500 retreating after hitting an all-time high in the previous session, as oil prices bounced back from their initial lows and uncertainty over U.S.-Iran peace talks weighed on investors’ sentiment. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.6% or 313.62 points, to end at 49,596.97 points.
The S&P 500 gave up 0.4% to finish at 7,337.11 points. Materials and energy stocks were the worst performers.
The Materials Select Sector SPDR (XLB) lost 1.9%. The Energy Select Sector SPDR (XLE) declined 1.8%. The Industrials Select Sector SPDR (XLI) gave up 1.6%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq shed 0.1% to close at 25,806.20 points.
The fear gauge, CBOE Volatility Index (VIX), was down 1.78% to 17.08. Decliners outnumbered advancers on the S&P 500 by a 1.8-to-1 ratio. A total of 18.3 billion shares were traded on Thursday, higher than the last 20-session average of 17.5 billion.
On the Nasdaq, there were 132 new highs and 89 new lows. On the S&P 500, there were 18 new 52-week highs and 11 new lows.
Stocks Retreat, Uncertainty Over Iran Peace Talks Continue
Stocks retreated on Thursday amid uncertainty over peace talks with Iran. It was reported earlier that the United States and Iran could soon reach a deal that would end the war. However, broader issues could be left out of the initial agreement.
Iran had earlier said that it was reviewing the new proposal from the United States. However, Iran has not taken a final decision and is yet to reach out to the United States. Meanwhile, there were reports on Wednesday that the White House said the United States is likely reaching a one-page 14-point memorandum of understanding with Iran to end the war.
Oil prices rebounded from their session lows after trading below $100 per barrel. The U.S. West Texas Intermediate crude futures finally ended down 0.28% on Thursday at $94.81 per barrel.
The uncertainty over the peace deal weighed on investors’ sentiment, dragging down stocks. Tech and chip stocks suffered on Thursday, led by a 1.4% decline in Amazon.com, Inc. (AMZN) stock.
Also, chip stocks Intel Corporation (INTC) and Advanced Micro Devices, Inc. (AMD) retreated from their earlier highs. Shares of Intel and Advanced Micro Devices declined 3% and 3.1%, respectively. Advanced Micro Devices currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
