US stocks declined on Thursday, with the S&P 500 down 0.9%, the Nasdaq off 1.5%, and the Dow Jones Industrial Average losing nearly 120 points. Technology shares remained under pressure as corporate earnings failed to impress investors, reigniting concerns about the durability of the AI-driven rally and accelerating the ongoing rotation out of semiconductor names. Communication services and consumer discretionary stocks also came under heavy selling, while consumer staples outperformed as investors sought more defensive exposure.
At the same time, oil prices rose on renewed supply risks and escalating geopolitical tensions. Among individual movers, Meta slumped 6% despite posting higher earnings and revenue, and Tesla dropped 2.4% after paring back its spending plans, with capital expenditures in the latest quarter coming in below expectations. Lam Research sank more than 10% after issuing a downbeat outlook. Nvidia fell 1.7%, and IBM declined 2.1%. Honeywell slipped 0.5% even as the company raised its full-year guidance. In contrast, Lockheed Martin jumped 8.6% after reporting results that topped forecasts on both earnings and revenue.
