In today’s stock market news, major indexes closed lower on Thursday, largely due to a sharp decline in Salesforce shares. The Dow Jones Industrial Average fell more than 300 points as traders also looked ahead to key U.S. inflation data.
Market Summary
Dow Jones: Dropped 330.06 points (0.86%) to 38,111.48.
S&P 500: Decreased by 0.6%, ending at 5,235.48.
Nasdaq Composite: Fell by 1.08% to 16,737.08, highlighting weakness in technology stocks.
Salesforce’s dramatic 19.7% plunge, its worst day in nearly 20 years, was a major factor in the market’s decline. The company missed revenue expectations for the fiscal first quarter and issued a weak outlook. Other tech giants also saw declines, with Nvidia sliding more than 3% and Microsoft dropping over 3%, marking its worst day since October.
Weekly and Monthly Performance
This drop comes amid a challenging, holiday-shortened trading week. The S&P 500 has decreased by about 1.3%, and the Nasdaq Composite by 1.1%, both on track to end five-week winning streaks. The Dow has tumbled more than 2%, heading for its second consecutive losing week.
Despite this week’s declines, all major indexes are poised to end the month higher:
Nasdaq Composite: Up nearly 7% in May.
S&P 500: Up 4% in May.
Dow: Up 0.8% in May.
Investor Sentiment and Treasury Yields
Investor sentiment has been negatively impacted by rising 10-year Treasury yields, which make safer investments like Treasury bills and money market funds more attractive compared to stocks. Although the yield dipped slightly on Thursday, it remains above the 4.5% level, which is concerning for stock investors.
Looking Ahead
Market volatility is expected to continue as investors remain cautious about consumer spending and interest rates. Jason Heller, executive vice president at Coastal Wealth, noted that traders are adopting a “one step forward, one step back” approach, balancing between gains and risk.
Traders are also anticipating Friday’s release of the personal consumption expenditures (PCE) price index for April, the Federal Reserve’s preferred inflation measure. Expected to come in at 2.7%, it remains above the Fed’s 2% target, adding to the market’s uncertainty.
Verdict
In stock market news, the market faced significant declines, driven by Salesforce’s steep drop and broader tech sector weakness. Despite the week’s downturn, there is optimism as the major indexes are set to finish the month higher. Investors are keeping a close eye on upcoming inflation data, navigating a market characterized by both momentum and caution.
