New York, NY – US stocks showed uncertainty on Thursday, influenced by chipmaker Micron’s sales forecast that met expectations but failed to impress investors looking for better performance from AI-related companies. The S&P 500 remained relatively flat, the Dow Jones Industrial Average hovered near the flatline, and the Nasdaq Composite saw a slight increase of 0.1%.
Investors are closely monitoring economic data, particularly in anticipation of the PCE inflation print on Friday, which will impact the Federal Reserve’s decision on interest rate cuts. Initial weekly jobless claims decreased by 6,000 to 233,000, lower than the consensus expectation of 235,000. However, recurring jobless claims rose to their highest level since late 2021, indicating a longer wait for unemployed individuals to find work.
Recently, real GDP increased at an annual rate of 1.4% in the first quarter of 2024, slightly higher than the previous estimate of 1.3%. Meanwhile, concerns are arising that the rally driven by AI companies may be at risk if tech leaders fail to exceed already high expectations.
In corporate developments, memory maker Micron’s shares dropped by more than 4% in early trading, contributing to Nvidia’s 1% decrease. Levi Strauss also experienced a significant decline of over 15% following a revenue miss. Investors are now looking to Nike’s quarterly results for insights into consumer resilience in the current market environment.
As the day unfolds, market observers are keen on tracking the ongoing discussions around inflation, especially as it relates to the upcoming presidential debate between Joe Biden and former President Donald Trump. The interaction between economic indicators, corporate earnings, and investor sentiment continue to shape the market landscape, with key players like Micron and Levi’s influencing broader market movements.