Stocks open steady as S&P 500 eyes 5,000 mark
US stocks opened near the flatline on Thursday, hitting pause after hitting fresh record highs, as investors cheered chipmaker Arm’s outlook and looked for fresh impetus in the latest batch of corporate results.
The S&P 500 (^GSPC) slipped almost 0.1%, after the major benchmark closed just a few points shy of hitting 5,000 for the first time ever. The Dow Jones Industrial Average (^DJI) opened just above the flatline, while the tech-heavy Nasdaq (^IXIC) dipped 0.1%.
Stocks have rallied as robust economic data and upbeat earnings have lifted spirits on Wall Street, helping the benchmark S&P 500 close in on the key psychological level. But some investors are questioning whether gains can be sustained, given the concentrated group of megacaps driving them.
Shares in Arm (ARM) soared over 25% in premarket trading, boosting hopes that AI and techs will keep buoying the market. The chipmaker gave a surprisingly bullish forecast based on its expansion into new areas. Also providing cheer, Disney (DIS) shares rose almost 8% as investors welcomed its earnings beat and deals with Taylor Swift and Fortnite maker Epic Games.
Meanwhile, traders have scaled back on bets on a March interest rate cut thanks to a drumbeat of caution from central bank officials. Richmond Fed president Tom Barkin is set to add his comments on Thursday, while the weekly jobless claims report due later could also move the needle on policy expectations given December’s blockbuster jobs report.
Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards
Elsewhere, worries about deflation in China reignited as data showed consumer prices in the world’s second-biggest economy fell by the most since 2009 amid the global financial crisis.
Also on the downbeat side, Danish shipping giant Maersk’s (AMKBY) warning about a freight slowdown rattled investors. Its shares slumped 15% after the company said it will suspend share buybacks.
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