Investing.com — The S&P 500 closed lower after topping the 5,500 milestone for the first time ever on Thursday as Nvidia’s recent gains slowed, the broader technology sector fell and a flurry of economic data pointed to signs of a weakening economy.
By 3:00 PM EST (4:00 PM Japan time), the was down 0.2% after hitting an all-time high of 5,505.23, the was down 0.8%, and the was up 299 points, or 0.7%.
Nvidia loses top spot to Microsoft; AMD surges
NVIDIA Corporation (NASDAQ:) gave up gains to fall more than 3%, ceding its spot as the most valuable company to Microsoft.
Nvidia’s market cap fell to $3.217 trillion, just behind Microsoft’s (NASDAQ:) $3.312 trillion, while Apple (NASDAQ:) remained in third place at $3.215 trillion.
But rival Advanced Micro Devices (NASDAQ:) rose 4% after Piper Sandler named the company a top pick and called it a “bright spot” for the second half of the year.
Meanwhile, Supermicro Computer (NASDAQ:) and Dell Technologies (NYSE:) ended flat, giving up the gains they had made after Elon Musk announced that they had hired AI startup xAi to build a supercomputer.
Accenture sparks AI boom, Trump Media & Technology Group worries about potential dilution
Accenture (NYSE:) shares rose more than 7% after the IT services provider forecast better-than-expected full-year revenue growth as growing adoption of artificial intelligence offset slowing business spending.
Trump Media & Technology Group Inc. (NASDAQ:) shares fell 14%, following a 10% drop on Tuesday, after a Securities and Exchange Commission ruling allowed investors in the company’s derivative products, called warrants, to exchange their holdings for shares of the company, potentially diluting the stock for long-term investors.
Shares of motorhome maker Winnebago (NYSE:) fell more than 3% after disappointing third-quarter results and rising interest rates spurred buying.
Gilead (NASDAQ:) shares rose 8% after the company reported that its HIV drug lenacapavir was 100% effective at preventing infection in women in a late-stage clinical trial.
Housing starts fall in May, unemployment claims rise
Economic data released early on Thursday showed the economy was slowing, with unemployment falling 5.5% in May to 238,000, beating the forecast of 235,000.
Fed officials have been cautious about expecting a rate cut too soon and want more evidence that inflation is under control before the central bank agrees to ease monetary policy.
FOMC members are due to speak later in the session, and it comes after the Minneapolis Federal Reserve Bank president said it could take up to two years to bring U.S. inflation back to the Fed’s medium-term goal.
Speaking at the Michigan Bankers Association’s annual conference early Thursday, Kashkari said wage growth is too high to bring inflation back to the 2 percent target at this time.
Peter Nurse contributed to this story
