Traders work on the floor of the New York Stock Exchange on Jan. 15, 2025 in New York City.
David Dee Delgado | Getty Images
The S&P 500 was flat Thursday, on pace to end a three-day winning streak, as big tech shares pulled back.
The broad market index inched down just 0.04%. The tech-heavy Nasdaq Composite slipped 0.4%. The Dow Jones Industrial Average slipped 40 points, or 0.1%.
Apple shares were down 3.7%, putting them on pace for their worst day since Aug. 5. Tesla dropped 4.3%. Nvidia and Alphabet also lost around 1%.
The major averages gave up gains from earlier in the day, which came on the back of strong corporate earnings. Morgan Stanley beat earnings expectations, sending the stock up more than 2%. Bank of America also exceeded bottom-line estimates, but the stock shed 2%. The results come a day after other financial peers such as JPMorgan Chase and Goldman Sachs also beat fourth-quarter estimates.
Dow rolls over
The earnings season is off to a strong start overall, with 77% of the companies that have reported thus far beating expectations, per FactSet.
“So there’s some heaviness and almost even exhaustion to this market, as we all try to give this bull market another leg to go and see what fuels the next upside moment,” said Keith Buchanan, senior portfolio manager at Globalt Investments.
“Earnings have started out with the banks being definitely a positive, but it seems there’s going to have to be more than that, and that’s what today’s action seems like,” Buchanan added.
Wall Street is coming off its strongest session since November, with the Dow on Wednesday climbing more than 700 points, while the S&P 500 and Nasdaq rallied 1.8% and 2.5%, respectively. A moderate improvement in core inflation in December’s consumer price index and strong earnings from big banks spurred a risk-on rally.
The 10-year U.S. Treasury yield pulled back sharply from a 14-month high reached earlier in the week. It last hovered around 4.623%.
