FX.co ★ US Stocks Inch Lower on Thursday

On Thursday, US stocks exhibited a mostly downward trend, continuing the subdued momentum observed in the previous session. This performance was influenced by conflicting economic data, leaving investors uncertain about the potential for increased earnings and the extent of interest rate cuts expected from the Federal Reserve. Both the Dow Jones Industrial Average and the S&P 500 hovered slightly below their previous levels, while the Nasdaq suffered a sharper decline of 0.5%. Leading technology companies largely maintained their downward trajectory from the prior session, as they continued to face scrutiny. This comes after significant speculative investments in global AI implementation had driven impressive returns in the software and data center infrastructure sectors last year. In contrast, defense stocks experienced a surge following President Trump's announcement that the US military budget would escalate to $1.5 trillion by 2027. This increase extends the sector's recent upward trend, further fueled by geopolitical developments such as the US's capture of Venezuelan President Maduro and the White House's aggressive stance on Greenland. As a result, shares in companies like Lockheed Martin, RTX, and Northrop Grumman rose between 4% and 8%.