Stocks were nervous Thursday as uncertainty continued over President Donald Trump’s tariff plans, while technology stocks digested recent gains tied to the White House’s artificial intelligence ambitions.
The Dow Jones Industrial Average opened 50 points, or 0.1% higher. The S&P 500 was down 0.2%, while the tech-heavy Nasdaq fell 0.6%. The S&P 500 closed just below its all-time high on Wednesday.
The index’s turnaround comes shortly before Trump is scheduled to deliver a speech and potentially take questions at the World Economic Forum in Davos, Switzerland. Questions could focus on Trump’s recent $500 billion commitment to artificial intelligence through Project Stargate. Doubt was cast over funding after billionaire Elon Musk on X questioned whether the company had enough money to see it through.
Stocks also likely felt some heat from rising Treasury yields. The 10-year yield climbed to 4.647% after falling from its Jan. 13 peak of 4.802%. Higher yields make riskier assets less attractive.
Investors also remain on the lookout for any news related to tariffs, which could reignite inflation and hurt stocks and bonds.
In economic news, data showed Americans’ applications for unemployment benefits rose last week but remained low, indicating minimal stress in labor markets.
“The bottom line: The hiring frenzy and job-hopping atmosphere of a few years ago has largely normalized. Working conditions remain largely constructive, consistent with an economy that remains on a solid growth trajectory,” wrote Jim Baird, chief investment officer at Plante. Moran Financial Advisors.
Also in focus is Thursday’s earnings slate, which saw American Airlines report record revenue. Texas Instruments releases its report after market close today. Next week, several Mag 7 and other technology companies will release their results.
