FX.co ★ US Stocks Pull Back

US stocks retreated on Thursday, pressured by a selloff in semiconductor shares and rising concerns over a more hawkish Federal Reserve. The S&P 500 slipped 0.3%, the Nasdaq 100 lost more than 1%, while the Dow Jones Industrial Average was little changed.

Chipmakers declined sharply amid doubts that major AI hyperscalers will sustain their current pace of infrastructure spending. Speculative interest in the sector was further undermined by South Korea’s ban on leveraged ETFs and by indications from ASML that next‑generation machines could be more efficient, potentially reducing near‑term equipment demand. Micron, AMD, SanDisk, Intel, and Broadcom each fell roughly 3%.

In contrast, UnitedHealth rallied 7% after reporting better‑than‑expected earnings and raising its full‑year outlook.

On the macro front, retail sales data pointed to resilient US consumer demand once weaker fuel receipts were stripped out. Initial jobless claims remained low, underscoring the persistence of a tight labor market. Together, the figures reinforced expectations for at least one additional Fed rate hike this year, especially as renewed military strikes between Iran and the United States rekindled concerns over energy‑driven inflation.

In mergers and acquisitions, Uber gained 3% after agreeing to buy Delivery Hero in a $14.8 billion deal. Eli Lilly slipped about 1% after announcing a $3.8 billion acquisition of AtaiBeckly.