NEW YORK (AP) – The US stock market hit a pause on Thursday after reaching record highs, as investors responded to positive corporate results and chipmaker Arm’s strong outlook. The S&P 500 hovered around the flatline, nearing the key psychological level of 5,000, while the Dow Jones Industrial Average was down 0.2% and the Nasdaq rose 0.3%.
Stocks have seen a rally due to robust economic data and positive earnings, lifting spirits on Wall Street and propelling the S&P 500 towards the milestone of 5,000. However, some investors are questioning the sustainability of these gains, given the small group of megacap companies driving them.
Shares in Arm soared over 50% after a strong sales outlook, providing hope that AI and tech will continue to buoy the market. Additionally, Disney shares rose more than 11% after reporting an earnings beat and announcing deals with Taylor Swift and Fortnite maker Epic Games.
Meanwhile, worries about deflation in China emerged as data showed consumer prices fell by the most since 2009. Danish shipping giant Maersk also rattled investors with a warning about a freight slowdown, causing its shares to slump 15% after the company announced it would suspend share buybacks.
Traders have reduced their bets on a March interest rate cut, as central bank officials have expressed caution about potential rate cuts later this year. Richmond Fed president Tom Barkin is expected to share his comments on the matter, while the weekly jobless claims report could also influence policy expectations.