US stocks retreated from record highs on Thursday as investors watched for Iran’s response to a US peace proposal and combed through labor updates and fresh earnings reports.
The Nasdaq Composite (^IXIC) slipped 0.1% while the S&P 500 (^GSPC) declined almost 0.4% on the heels of record-high closes for the tech-exposed benchmarks. The Dow Jones Industrial Average (^DJI), meanwhile, sank 0.6%.
Iran is said to be evaluating a US proposal to end the near-10-week war, and it is expected to give its response as soon as Thursday, CNN reported. Investors were watching for signs of any progress toward easing the Strait of Hormuz blockade as Brent (BZ=F) oil futures rose, reigniting inflation worries.
Market sentiment had gotten a lift from the steady march of tech earnings, indicating strength in the AI trade. Shares in Arm (ARM) initially rose on the chip designer’s upbeat revenue forecast but then sank on Thursday on concerns about a lack of chip supply.
In a busy week for labor data, Thursday brought a Challenger report on layoffs in April, which showed AI was blamed as the tech sector got hit hardest. A weekly reading on jobless claims came in cooler than expected, setting the stage for the all-important monthly jobs report on Friday.
