NEW YORK — U.S. stock markets are hovering close to record levels, although recent gains on Wall Street seem to be losing stability. In early trading on Thursday, the S&P 500 edged down by 0.1%, just a day after almost reaching its all-time high from early December. Meanwhile, the Dow Jones Industrial Average showed little change, and the Nasdaq composite experienced a decline of 0.6%. International markets exhibited relatively subdued movements as well. Elevance Health experienced a positive uptick in the insurance sector following its announcement of better-than-expected sales and profit results, in addition to a dividend increase. Conversely, shares of Electronic Arts fell sharply after it provided disappointing preliminary results for its financial performance. Treasury yields increased during this trading period.
In a separate update on Thursday, Wall Street’s premarket trading displayed mixed signals, with major airline stocks struggling while the health insurance sector thrived. Futures for the S&P 500 showed a decline of 0.1% prior to market open, while Dow Jones futures slightly rose by 0.1%. American Airlines saw its shares drop by 7.5% following its strong profit report, as the company indicated expectations of losses in the upcoming first quarter. Similarly, shares of United Airlines fell by 2.2% after releasing positive results just after the market closed on Wednesday. JetBlue and Southwest saw their shares decrease by 2.5% and 1.6%, respectively, as both companies are set to announce their own results next week.
Elevance Health led the insurance stock surge, reporting earnings and revenue that surpassed Wall Street projections, and subsequently raised its dividend. This positive performance pushed Elevance shares up by 5.5% prior to the open, while Cigna and UnitedHealth Group’s shares rose by 3.8% and 1.6%, respectively. CVS Health also climbed, gaining 1.3%. In stark contrast, Electronic Arts saw a more than 17% drop in its stock after reporting preliminary figures that fell short of investor expectations, with a noted decline in bookings from its global football division being a key factor.
GE Aerospace enjoyed a substantial gain of 5.5%, easily surpassing Wall Street’s profit and sales forecasts. Investors appeared to be closely monitoring the imminent government release regarding jobless benefit applications, which are anticipated to maintain a healthy trend that has characterized them for several years.
Across Europe during midday trading, Germany’s DAX index increased by 0.3%, while Paris’s CAC 40 saw a gain of 0.4%. The UK’s FTSE 100 showed a modest rise of 0.2%. In Asia, efforts to invigorate China’s sluggish stock market led to officials emphasizing the necessity for pension funds and mutual funds to increase stock purchases, aiming to encourage price growth. The head of the China Securities Regulatory Commission, Wu Qing, announced that publicly listed companies would also be incentivized to engage in stock buybacks and elevate dividends for shareholders. The Shanghai Composite Index closed with a slight increase of 0.5% at 3,230.16, while Hong Kong’s Hang Seng Index reversed its earlier gains, resulting in a 0.4% decline to 19,700.56.
Ipek Ozkardeskaya from Swissquote Bank commented on the market sentiment, noting a lack of sustained enthusiasm following President Donald Trump’s comments on potential tariffs on Chinese goods. “The shooting star pattern of today hints that sentiment remains bearish for Chinese equities,” she stated. In Tokyo, the Nikkei 225 index rose by 0.8% to reach 39,958.87. However, Fuji Media Holdings plummeted by 7.8% after prominent TV personality Masahiro Nakai announced his retirement amid sexual assault allegations that have affected Japan’s entertainment landscape, causing significant ad revenue losses for associated networks.
In Australian markets, the S&P/ASX 200 dipped by 0.6% to 8,378.70, while Seoul’s Kospi fell by 1.2% to 2,515.49. India’s Sensex witnessed a modest rise of 0.3%, while Bangkok’s SET index decreased by 0.7%. In the cryptocurrency realm, buoyed by market optimism regarding President Trump’s potential regulatory stances, bitcoin traded below $102,000, following a record peak of over $109,000 achieved on Monday.
In energy markets, U.S. benchmark crude oil prices rose by 17 cents to reach $75.61 per barrel, while Brent crude, the global standard, increased by 20 cents to $79.20 per barrel. The U.S. dollar also experienced a slight retreat, valued at 156.38 yen in comparison to 156.43 yen from the previous session, and the euro dipped slightly to $1.0404 from $1.0411.
