NEW YORK: US stocks edged down from record highs hit earlier in Thursday’s session, pressured by a pullback in chipmakers following a recent rally, while investors awaited developments in US-Iran peace talks as well as Friday’s employment numbers.
The S&P 500 and the Nasdaq touched fresh peaks in morning trading, helped by a decline in oil prices amid optimism that an agreement between Washington and Tehran could ease tensions and ease global crude supply.
However, stocks dipped as the day wore on, with heavyweight chip majors dragging on the main indexes.
US-listed shares of Arm Holdings slid 10.8 percent as worries about the company’s ability to secure sufficient supplies for its new AI chip overshadowed a strong earnings forecast.
The Philadelphia SE Semiconductor index fell more than 2 percent, having jumped almost 60 percent so far this year.
“The markets are just waiting for news (out of Iran) and obviously the big jobs number tomorrow,” said Phil Blancato, chief market strategist at Osaic Wealth in New York.
“The earnings season has been excellent. Despite higher costs of fuel, we’re still seeing a market that’s very resilient and wanting to go higher. If we get a positive announcement on the war, it’s going to go much higher.”
The United States and Iran are edging toward a temporary agreement to halt their war, sources and officials said on Thursday, with Tehran reviewing a proposal that would stop the fighting but leave the most contentious issues unresolved.
Oil prices fell 3 percent, bouncing off session lows in volatile trading.
The S&P 500 energy led declines among the major sectors with a 2.3 percent drop.
At 12:17 p.m. ET, the Dow Jones Industrial Average fell 176.08 points, or 0.35 percent, to 49,734.51. The S&P 500 lost 22.39 points, or 0.30 percent, to 7,343.95, and the Nasdaq Composite shed 41.02 points, or 0.16 percent, to 25,797.93.
A relentless rally in technology and AI shares has helped push US stocks to fresh peaks this year as investors cheered signs of strong demand for artificial intelligence and a robust earnings season.
Upbeat economic readings in recent weeks have also helped allay concerns of slowing growth.
Data showed the number of Americans filing claims for unemployment benefits rose less than expected last week amid low layoffs that are helping anchor the labor market.
After a strong private payrolls report on Wednesday, investors are awaiting the more comprehensive nonfarm payrolls numbers on Friday, with jobs seen increasing by 62,000 in April after rebounding 178,000 in March, according to a Reuters poll of economists.
Traders continued to bet the US Federal Reserve would hold interest rates steady through the end of the year due to a resilient labor market and elevated energy prices.
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