Wall Street: stocks slip as S&P 500, Dow retreat further from record highs

Indices

The major US indices are trading with a subdued tone, reflecting a day of mixed sentiment and marginal movements across the board. The S&P 500 (^GSPC) is currently quoted at 6.91K, down -0.16, signaling a slight pullback from recent highs. This decline, paired with a “STRONG_SHORT” micro-trend, suggests the index is currently facing downward pressure, and traders should be wary of further short-term weakness.

The NASDAQ Composite (^IXIC) stands at 23.47K, a decrease of -0.5. The index is exhibiting a “FLAT” micro-trend, indicating a lack of clear direction as technology stocks consolidate after significant gains earlier in the week.

The Dow Jones Industrial Average (^DJI) trades at 48.97K, down marginally by -0.06. Like the NASDAQ, the Dow is displaying a “FLAT” micro-trend, reflecting a balance between sector winners and laggards.

Across all three indices, the current signals point to caution, with weak upward momentum and a tendency toward consolidation. The S&P 500’s strong short trend is particularly notable and could signal the need for tight risk controls.

Stocks

Today’s market activity highlights significant volatility in select stocks. Notably, Nuvve Holding Corp. (NVVE) leads the gainers with a sharp rise of 47.86, closing at $5.19, while Enliven Therapeutics, Inc. (ELVN) also posts a significant surge. On the downside, John Hancock ESG Large Cap Core Fund Class A (JHJAX) is among the top losers, falling -42.01 to $12.56.

Most active stocks include Jet.AI Inc. (JTAI), which has experienced a notable percentage increase, and Aclarion, Inc. (ACON), both posting strong moves. This level of activity in small and mid-cap names may suggest rotational strategies at work, with traders seeking momentum opportunities outside of the megacap leaders.

Technology remains a focus, with news highlighting advances in AI and significant moves in stocks like Amazon, Micron Technology, and Microsoft earlier in the week. These trends reinforce the sector’s leadership in shaping overall index direction.

Economic News

Recent US economic releases have delivered mixed signals. Challenger Job Cuts for December came in at 35.55 thousand, a sharp drop from the previous 71.32, indicating fewer layoffs and suggesting labor market resilience. Unit Labour Costs for Q3 fell by -1.9 percent, pointing to easing wage pressures, while Nonfarm Productivity rose 4.9 percent, a healthy sign for economic efficiency.

Initial Jobless Claims registered at 208 thousand, above the prior 199 but within expectations, suggesting a stable employment environment. Recent declines in imports to $331.4 billion could reflect softer demand or supply chain normalization.

Economic news has generally reinforced a cautious but constructive outlook, with the labor market steady and costs under control—factors that may influence upcoming Federal Reserve decisions.

Economic Events

Several key economic events are shaping the market narrative this week. Notably, investors are awaiting further reports on job openings, unemployment, and consumer sentiment. These data points are expected to provide clarity on the trajectory of monetary policy, especially regarding the Federal Reserve’s stance on interest rates.

Additionally, the ongoing CES trade show is in focus, particularly for technology and AI-related sectors, as traders look for signals that could drive the next leg of growth or correction in technology equities.

Market Sentiment

Overall, market sentiment remains cautious, with a tilt toward risk aversion. The S&P 500’s “STRONG_SHORT” micro-trend hints at growing bearishness or profit-taking after a strong run-up, while the “FLAT” trends in both NASDAQ and Dow Jones suggest indecision and a lack of strong conviction among market participants.

Technology stocks continue to exert significant influence, but recent volatility and sector rotation into energy and defensive names highlight the willingness of investors to adjust exposure in response to evolving macroeconomic and geopolitical developments.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.