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Stocks were jittery on Thursday as uncertainty lingers over President Donald Trump’s plans for tariffs, while tech stocks digested recent gains on the White House’s artificial-intelligence ambitions.
The Dow Jones Industrial Average opened up 50 points, or 0.1% higher. The S&P 500 was down 0.2%, while the tech-heavy Nasdaq fell 0.6%. The S&P 500 closed just below its all-time high on Wednesday.
The about-turn by the index comes shortly before Trump delivers a speech and potentially answers questions at the World Economic Forum in Davos, Switzerland. Questions could be on Trump’s recent $500 billion commitment to artificial intelligence through the Stargate project. Doubt was cast on the funding after billionaire Elon Musk, on X, questioned whether the venture has enough money to follow through.
Stocks were likely also feeling some heat from higher Treasury yields. The 10-year yield climbed to 4.647% after retreating from its Jan. 13 peak of 4.802%. Higher yields make riskier assets less attractive.
Investors are also keeping a watch out for any news related to tariffs, which have the potential to reignite inflation and hurt stocks and bonds alike.
In economic news, data showed that Americans filing for unemployment benefits ticked up last week but remained low, indicating minimal stress in labor markets.
“Bottom line: The frenetic hiring spree and job-hopping atmosphere of a few years ago has largely normalized. Labor conditions remain largely constructive, consistent with an economy that remains on a solid growth path,” wrote Jim Baird, chief investment officer with Plante Moran Financial Advisors.
Focus is also on Thursday’s earnings slate that saw American Airlines report record revenue. Texas Instruments reports after the market closes today. Next week, several Mag 7 and other tech companies will report earnings.
