Synopsis
Wall Street closed lower on Thursday, impacted by declines in private equity firms and tech giants Nvidia and Apple. Concerns about AI disruption and high valuations weighed on tech stocks, while mixed earnings and economic data kept investors cautious about future rate decisions from the Federal Reserve.
ETMarkets.comIndian markets saw a decline on Thursday. Private equity firms have faced pressure. Tech giants Nvidia and Apple also declined.Wall Street ended lower on Thursday, with losses in private equity businesses and the weakness of Nvidia and Apple, while earnings-driven gains in the industrial sector limited losses.
Private equity firms fell after Blue Owl CapitalThe decision to sell $1.4 billion in assets and freeze redemptions from one of its funds to manage debt and return capital.
Apollo Global Management, Ares, KKR & Co and Carlyle Group all fell as Blue Owl’s problems added to recent concerns about credit quality and lender exposure to software stocks. Blue Owl also fell.
Nvidia and Apple both fell and were among the companies weighing the most on the S&P 500.
AI-related technology stocks have faced turbulence in recent months amid concerns about high valuations and limited evidence that massive investments in AI are driving revenue and profit growth.
Sectors ranging from software to logistics have also been hit by fears that rapidly improving AI tools will disrupt their business models and intensify competition.
“The market is trying to understand which industries are significantly threatened by AI. This technology is growing extraordinarily quickly and days like today seem natural. We are at a point in the cycle where you realize that not everyone is going to win and not all expectations are going to be met,” said Keith Buchanan, senior portfolio manager at Globalt Investments in Atlanta.
Walmart fell after new CEO John Furner began his tenure with cautious guidance for fiscal 2027, as well as a $30 billion buyback plan.
Deere & Co jumped after the agricultural machinery maker raised its annual profit forecast and beat first-quarter earnings estimates.
According to preliminary data, the S&P 500 lost 20.22 points, or 0.28%, to end at 6,861.09 points, while the Nasdaq Composite lost 71.27 points, or 0.31%, to 22,682.37. The Dow Jones Industrial Average fell 273.79 points, or 0.55%, to 49,388.87.
The S&P 500 energy index rose as crude oil prices rose on growing fears of a military conflict between the United States and Iran.
Omnicom surged after the advertising giant beat analysts’ estimates for fourth-quarter revenue, while Carvana fell after the online used car retailer missed fourth-quarter profit estimates.
Software provider EPAM Systems plunged as its cautious first-quarter outlook disappointed investors.
United States Minutes Federal ReserveThe latest policy meeting released on Wednesday showed policymakers remained divided over the policy path to follow later this year.
Investors assessed Thursday’s weekly unemployment claims data that points to a stabilizing labor market, and will carefully analyze the report on personal consumption expenditures – the Fed’s preferred inflation gauge – which is due Friday, for guidance on the Fed’s rate outlook.
Interest rate trading suggests a 50% chance the Fed will cut rates by its June policy meeting, according to CME’s FedWatch tool.
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
Subscribe to AND Bonus and read it Electronic document on economic times Online.and Sensex today.
Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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