Tech Stocks Weigh on Market as Nasdaq Drops; Earnings and Treasury Nominee Focused

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US stocks closed lower on Thursday, as major indexes struggled to maintain the momentum from the previous day's surge, following another round of big bank earnings and a decline in tech stocks. Investors also focused on the Capitol Hill confirmation hearing for President-elect Donald Trump's Treasury Secretary nominee, Scott Bessent. 

The S&P 500 dropped about 0.2%, while the Dow Jones Industrial Average slipped by more than 0.1%. The Nasdaq Composite, heavily weighted with tech stocks, fell almost 0.9%, with large-cap tech companies like Nvidia (NVDA) and Tesla (TSLA) underperforming.

This dip came after a strong rally the day before, fueled by a surprise slowdown in consumer inflation, which raised questions about whether the market had overestimated the likelihood of interest rate hikes this year. Stocks surged on Wednesday following the inflation data and strong earnings from major US banks.

Traders are now increasing bets that the Federal Reserve may lower interest rates before July, reversing expectations that were set back after the stronger-than-expected December jobs report. December retail sales grew by 0.4%, below the anticipated 0.6%, and slowing from the previous month's 0.7% increase.

Bank of America (BAC) saw its profit more than double in the fourth quarter, driven by a revival in Wall Street dealmaking, although its shares dropped slightly. Morgan Stanley's (MS) stock rose over 4% after posting a significant increase in quarterly profit.

Meanwhile, UnitedHealth's (UNH) fourth-quarter revenue fell short of expectations due to weakness in its health insurance division, causing its stock to drop about 6%.

The Senate Finance Committee's hearing on Bessent’s confirmation also attracted attention, with discussions on tariffs, debt concerns, and tax plans.

Paraphrasing text from "Yahoo!Finance" all rights reserved by the original author.