FX.co ★ Nasdaq Joins Dow, S&P 500 In Negative Territory

**Stock Market Update: Thursday's Trading Session**

The stock market experienced downward pressure on Thursday after an initial upward move failed to hold. Key indices, including the Nasdaq, Dow, and S&P 500, retraced their gains and entered negative territory.

Late in the session, the downward trend intensified, pushing the indices to new lows. The Dow fell by 565.49 points, or 1.4%, to 39,105.55. Meanwhile, the S&P 500 declined by 33.08 points or 0.6% to 5,273.93, and the Nasdaq decreased by 42.13 points or 0.3% to 16,759.41.

**Tech Stocks and Earnings Reports**

The early rally on Wall Street was driven by a surge in tech stocks, following Nvidia's (NVDA) optimistic quarterly results. This positive news propelled the Nasdaq and S&P 500 to new record highs.

Nvidia's shares spiked after the company reported fiscal first-quarter results that exceeded expectations and provided favorable guidance. Additionally, Nvidia announced a ten-for-one stock split and a 150% increase in its quarterly cash dividend to $0.10 per share.

**Market Sentiment and Interest Rates**

Despite this initial enthusiasm, buying interest waned due to lingering concerns about the broader market outlook and potential interest rate hikes, prompted by the Fed's mildly hawkish minutes from the previous day.

The minutes suggested that interest rates might stay elevated longer than previously anticipated. According to CME Group's FedWatch Tool, the likelihood of a rate decrease by September has dropped to 57.3%.

Adding to these concerns, the Labor Department reported a sharper-than-expected decline in first-time unemployment claims for the week ending May 18th. Initial claims fell to 215,000, down 8,000 from the previous week's revised figure of 223,000. Economists had predicted a slight decrease to 220,000.

**Sector-Specific Performance**

Networking stocks faced significant declines, resulting in a 2.7% drop in the NYSE Arca Networking Index. Gold stocks also exhibited substantial weakness, with the NYSE Arca Gold Bugs Index falling by 2.3%. This decline mirrors the ongoing decrease in gold prices, with June deliveries plunging $55.40 to $2,337.50 per ounce.

Other sectors sensitive to interest rate changes, such as utilities and commercial real estate, also saw notable declines. Additionally, airline, banking, and biotechnology stocks were among those moving markedly lower.

**International Markets and Bonds**

In overseas markets, the Asia-Pacific region had a mixed performance on Thursday. Japan’s Nikkei 225 Index rose by 1.3%, while China’s Shanghai Composite Index fell by 1.3%.

European markets also showed mixed results after initially strong performances. The U.K.’s FTSE 100 Index dropped by 0.4%, whereas Germany’s DAX Index and France’s CAC 40 Index each inched up by 0.1%.

In the bond market, treasuries continued their downward trend. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, increased by 4.7 basis points to 4.481%.