US stocks waver as jobless claims surprise; Nvidia falls despite strong earnings
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U.S. stocks wavered on Thursday after weekly jobless claims came in higher than expected. The Dow Jones Industrial Average fluctuated, while the S&P 500 turned positive late in the session. Nvidia shares fell despite reporting better-than-expected quarterly earnings.
Market Reaction
The Dow Jones Industrial Average swung between gains and losses on Thursday, closing marginally lower. The S&P 500 managed to turn positive by the end of the session, rising 0.2%. The Nasdaq Composite remained under pressure, dragged down by tech losses.
Jobless Claims Data
Initial jobless claims for the week ended May 16 rose to 242,000, above the consensus estimate of 225,000. The unexpected increase raised concerns about a softening labor market, though continuing claims remained relatively stable at 1.8 million.
Nvidia and Tech Movers
Nvidia shares fell 3.5% despite reporting first-quarter revenue of $28.3 billion, beating analyst expectations of $27.8 billion. The decline was attributed to profit-taking after a strong run-up ahead of earnings. Intuit shares cratered 12% after the company issued weak guidance, dragging down the software sector.
Trade Deficit Widens
The U.S. trade deficit widened in January, contributing to the market decline. The S&P 500 fell to its lowest level since January, reflecting concerns over economic data.
What's Next
Investors will focus on Friday's personal consumption expenditures (PCE) price index for April, the Fed's preferred inflation gauge. It remains unclear whether the labor market softening will be enough to prompt the Federal Reserve to consider rate cuts later this year.
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US stocks waver as jobless claims surprise; Nvidia falls despite strong earnings
