Stocks fell Thursday, with the Dow Jones Industrial Average registering its worst day of 2024, as a post-earnings rally in Nvidia failed to lift the broader market.

The 30-stock Dow slid 605.78 points, or 1.53%, and closed at 39,065.26 for its worst session of the year. Boeing was the biggest laggard in the Dow, falling 7.6%. The S&P 500 dropped 0.74%, closing at 5,267.84, and the Nasdaq Composite tumbled 0.39% to end at 16,736.03. Earlier in the session, both the broad-market index and the tech-heavy benchmark reached record highs.

Chipmaker and artificial intelligence darling Nvidia surged 9.3%, sending shares above $1,000, after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split.

Fiscal second-quarter revenue guidance of about $28 billion also beat an LSEG consensus forecast of $26.61 billion — a sign the company doesn't see its momentum slowing. For the bottom line, analysts expect a profit of $5.95 per share.

Nvidia's results have been a focal point for Wall Street, as traders hoped for signs that the excitement around AI is not waning. With its market cap of more than $2.5 trillion, Nvidia also has considerable sway over the broad S&P 500.

However, the majority of the stocks in the broad market index turned negative Thursday, indicating a lack of market breadth. More than 400 names in the S&P 500 were lower, and information technology was the only positive sector for the day.

Stronger than expected economic data also evaporated the rally on Thursday as investors cut their odds of a rate cut in September. Services and manufacturing data for May both topped economists' expectations, according to purchase manager surveys from S&P Global released Thursday. Initial jobless claims for the week ending May 18 came in at 215,000, while economists polled by Dow Jones called for 220,000. The results added to investors' concerns that the Federal Reserve will not lower interest rates soon.

Traders are currently pricing just a 51% chance the Fed will cut rates in its September meeting, down from 58% a day ago and nearly 68% in the prior week, according to the CME FedWatch Tool. When the probability falls below 60%, it's viewed as no longer likely that the Fed will take action.

The market has "some loose footing," Piper Sandler chief market technician Craig Johnson wrote in a Thursday note. "This market's strange mix of leadership, combined with breakdowns in transportation stocks and mediocre breadth readings, makes us not so confident that a new leg higher will be sustained from current levels."

Correction: A previous version misstated the consensus revenue estimate for Nvidia's fiscal second quarter.

Stocks close lower Thursday

U.S. stocks ended Thursday's trading session in the red.

The Dow Jones Industrial Average declined 605.78 points, or 1.53%, marking its worst day of 2024.

The S&P 500 dropped 0.74%, and the Nasdaq Composite fell 0.39%.

— Hakyung Kim

Retail trader sentiment lower on inflation worries, says Schwab

Bullish sentiment has dropped among retail traders in the second quarter, according to the Charles Schwab Trader Sentiment Survey released Thursday.

The survey reported bullish outlook among traders fell to 46% from 53% in the previous quarter. Bearish sentiment gained across all age groups, particularly among young and mid-life investors, Schwab noted.

"Traders began the year feeling pretty confident that the economy was improving and Fed rate cuts would be quick to follow," said James Kostulias, head of Trading Services at Charles Schwab. "But inflation concerns have jumped significantly. While about half of traders believe we'll avoid a recession this year, overall stock market sentiment cooled a bit in Q2 as those concerns took hold and expectations for rate cuts were significantly dialed back as key drivers like the Consumer Price Index indicated inflation was once again on the rise in March."

— Hakyung Kim

Market pricing now points to just one rate cut this year

Traders are lowering their expectations — again — for how many times the Federal Reserve will lower interest rates this year, and moving the outlook for the first cut still later.

A day after minutes from the last Fed meeting affirmed that policymakers are worried over inflation and not in a hurry to cut, traders in the fed funds futures market reduced their outlook to just one reduction in 2024. The probability of just a single cut jumped to nearly 58%, according to the CME Group's FedWatch Tool. Earlier this week the market was looking for two reductions.

At the same time, the first move lower is not expected to happen until at least September and more likely November. At the beginning of the year, traders were pricing in at least six cuts starting in March. The probability for a September cut fell to 51% Thursday afternoon.

—Jeff Cox

All 30 Dow members head for losses

Every member of the Dow is trading down in Thursday afternoon trading, underscoring the broad of market weakness.

The 30-stock average slid more than 1% in total during the session. If that holds through session close, it would mark the first day with such a loss since April ended.

Boeing and Intel led the group of blue-chip stocks down with drops of more than 7% and 4%, respectively. McDonald's, Walt Disney, Johnson & Johnson and Travelers were the next biggest losers, as each slipped more than 2%.

Merck, the best performer in the average, traded down about 0.1%.

— Alex Harring

Equal-weighted S&P 500 ETF on track for worst day in nearly a month

In another sign that the broader market was struggling Thursday, the Invesco S&P 500 Equal Weight ETF (RSP) dropped more than 1%, putting it on track for its worst day since April 30 — when it slid 1.4%.

The fund tracks an equal weighted version of the regular, market cap-weighted S&P 500. In other words, the stock with the lowest market cap — Norwegian Cruise Line at more than $6 billion — has the same impact on the fund as Microsoft, which is valued at $3.2 trillion.

— Fred Imbert

Geopolitical concerns will weigh more on markets

As the first-quarter earnings season winds down, investors will shift more of their attention to geopolitical concerns in the next few months before the next round of earnings, according to SimCorp.

"The Fed has been pretty clear that they're not going to cut rates, so you don't have this, 'Will they or won't they' [scenario] keeping everybody on edge. We are going to start to see a turn to some of this geopolitical stuff, whether it's its elections or the two ongoing wars," said Melissa Brown, managing director of applied research.

While events such as the U.S. and UK elections don't necessarily result in economic impacts, they do increase uncertainty, Brown noted.

"People may go from saying 'I'm just going to buy now,' to, 'Look, I'm gonna wait and see the outcome of this before I decide to commit more money to market,'" Brown said.

— Hakyung Kim

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading.

Nvidia — The chipmaker and artificial intelligence beneficiary spiked 11% after Nvidia posted strong fiscal first-quarter results, issued better-than-expected guidance and announced a 10-for-1 stock split. Other AI and related semiconductor names rallied on the results. Super Micro Computer shares rose by 1.2%.

Boeing — Shares dropped roughly 6% after CFO Brian West said he expects negative free cash flow and that the company's aircraft deliveries won't recover in the second quarter from the first. Boeing is dealing with several production challenges with its best-selling planes.

Live Nation Entertainment — Shares dropped 7% after the U.S. Department of Justice sued to break up the parent company of Ticketmaster, alleging antitrust violations.

The full list can be found here.

— Hakyung Kim

Roughly four-fifths of the S&P 500 is in negative territory

The S&P 500 may be higher in midday trading following strong Nvidia earnings, but a peek into the broader index reveals poor market breadth.

Roughly four-fifths of the S&P 500 was trading in negative territory on Thursday, or 396 names were in the red. The biggest decliner was Live Nation Entertainment, down by more than 6%. The second-biggest underperformer was Boeing, off by more than 5%.

Conversely, there were 107 names advancing in the benchmark. Nvidia was the top performer, last jumping more than 10%.

— Sarah Min

Copper rally poised to pause, Citi says

Copper prices could consolidate moving forward after a strong run has sent prices up above $10,500 per ton, according to Citi.

"Our base case is now for consolidation in copper prices over the next 3-6 months (i.e., range trading around current levels) with LME [London Metal Exchange] prices currently trading close to our 0-3mt point price target of $10,500/t (See here) after reaching our 6-12 month target of $11k/t last week," Citi analyst Tom Mulqueen wrote on Wednesday.

"We see current price levels as sufficient to avoid huge deficits in the copper market this year as the scrap market responds," Mulqueen added.

— Brian Evans

Solar ETF relinquishes some gains

The Invesco Solar ETF (TAN) pulled back on Thursday, giving up some ground after a big week.

The fund slipped more than 2% in the session. Still, the ETF was tracking to finish the week higher by about 7%.

Maxeon Solar led the fund lower on Thursday with a drop of more than 10%. Well-known industry names including SunPower, SolarEdge and Sunrun were also among the biggest losers in the session.

— Alex Harring

New cancer treatment could be a $25 billion market opportunity, says RBC

Big pharma is betting billions on an up-and-coming class of cancer treatments that some on Wall Street are calling a "massive opportunity."

It's called targeted radiopharmaceuticals. The therapy essentially delivers radiation directly into tumors by attaching a radioactive particle to a targeting molecule.

RBC Capital Markets sees a $25 billion market opportunity for the space.

The full story can be found here.

— Hakyung Kim, Michelle Fox

Boeing falls more than 6% on CFO's comments

Boeing's share price plummeted roughly 6% in midday trading Thursday after CFO Brian West said he expects negative free cash flow and that the company's aircraft deliveries won't recover in the second quarter from the first. Boeing is dealing with several production challenges with its best-selling planes.

Shares of the company are down nearly 33% this year.

— Pia Singh

Chips sector loses steam despite Nvidia rally

The VanEck Semiconductor ETF (SMH) was off its highs even as Nvidia pushed to record highs, a sign that the broader market was struggling even after the company's strong quarterly results. On Semiconductor was down 3%, while Intel and Analog Devices dipped 2% each.

— Fred imbert

Only one S&P 500 sector trading in positive territory

The S&P 500 ticked higher in midday trading, last up by 0.1% as it hovered near all-time highs. Its slight advance was due to the outperformance of just one sector trading in positive territory: Information technology.

The info tech sector was last higher by 1.5%, its advance thanks to Nvidia's recent quarterly results that lifted the AI chipmaker as well as related semiconductor names.

The other 10 S&P 500 sectors were trading in negative territory. The biggest laggard was utilities, down by 1%.

— Sarah Min

Live Nation shares fall on Department of Justice lawsuit

Live Nation shares fell 5% Thursday after the U.S. Department of Justice filed a lawsuit against the company on alleged antritrust violations.

The lawsuit, which was joined by 30 states, follows a DOJ investigation into whether the Ticketmaster parent company maintains a monopoly in the ticketing industry.

Live Nation and Ticketmaster merged in 2010. The complaint stated through Ticketmaster, Live Nation controls around 80% or more of major concert venues' primary ticketing for concerts.

In a statement, Live Nation stated the DOJ's allegations of a monopoly are "absurd."

The full story can be found here.

— Hakyung Kim, Sarah Whitten, Ece Yildirim

JPMorgan CEO Jamie Dimon says can’t rule out ‘hard landing’

JPMorgan Chase's chairman and CEO Jamie Dimon told CNBC Thursday that a "hard landing" for the U.S. cannot be ruled out.

Speaking at the JPMorgan Global China Summit in Shanghai, he told CNBC that the worst outcome for the U.S. economy will be a "stagflation" scenario, where inflation continues to rise, but growth slows amid high unemployment.

He added that interest rates could still go up "a little bit."

— Yun Li

New home sales post unexpectedly sharp decline for April

New homes sold at a much slower than expected pace in April, the Commerce Department reported Thursday.

Sales of new single-family homes totaled 634,000 for the month, a 4.7% drop from March and less than the Dow Jones estimate for 677,000.

The median sales prices was $433,500, down $6,00 from the previous month though nearly 4% higher than a year ago. The average sales price was $505,700.

—Jeff Cox

Services and manufacturing PMIs higher than expected

Services and manufacturing gauges for May both came in higher than expected and showed expansion in both sectors, according to purchase manager surveys from S&P Global released Thursday.

The services activity index posted a 54.8 reading on the month, while manufacturing was at 50.9. Both were higher than April and topped respective Dow Jones estimates for 51.5 and 50. Both indexes also showed that input prices "continued to rise sharply," S&P said in the report.

Readings above 50 for the PMI surveys indicated expansion.

—Jeff Cox

AI, semiconductor stocks jump after strong Nvidia outlook

Popular artificial intelligence and semiconductor stocks rose after Nvidia posted strong earnings and a robust forecast that showed continued demand for artificial intelligence chips.

Super Micro Computer popped 10%, while Advanced Micro Devices jumped nearly 4%. Marvell Technology, Micron Technology, Applied Materials and the VanEck Semiconductor ETF added about 3% each, while ASML Holding rallied about 5%.

Nvidia shares were last up more than 9% and 110% on a year-to-date basis

— Samantha Subin

Stocks open higher Thursday

U.S. stocks started Thursday's session higher.

The S&P 500 rose 0.6% to a new record high, while the Nasdaq Composite rose 1.1%. Meanwhile, the Dow Jones Industrial Average traded near the flatline.

— Hakyung Kim

If Nvidia were in the Dow, it would single-handedly add 440 points at Thursday's open

Nvidia's worth more than $2 trillion, but it ain't in the Dow Jones Industrial Average.

If it were, Nvidia's premarket gain gain of close to $67 per share would by its lonesome push up the Dow by about 440 points at the market's Thursday open.

That's because the archaic average was devised by Charles Dow and Edward Jones in May, 1896 and uses a divisor to calculate its value rather than a company's market capitalization, as does the S&P 500 for instance. Today, every dollar move higher or lower in any stock in the Dow moves the average 6.6 points.

— Scott Schnipper

Jobless claims slip more than expected

After a brief scare that layoffs could be on the rise, unemployment claims from the past week indicated that the labor market is still strong.

First-time claims for jobless benefits totaled 215,000 for the week ended May 18, down 8,000 from the previous period's upwardly revised level, the Labor Department reported Thursday. Economists surveyed by Dow Jones had been looking for 220,000.

Continuing claims, which run a week behind, nudged higher to 1.794 million but that was just below the FactSet estimate.

—Jeff Cox

What Nvidia's stock split could potentially mean for the Dow

Nvidia's 10-for-1 stock split is the latest in a string of higher-profile stock splits this year – with companies like Walmart and Chipotle citing a desire to make their stock more affordable to investors and employees alike. Nvidia is the third company with a share price over $900 to announce a stock split this year – Chipotle at over $3,100 and Lam Research at more than $960 – being the others.

Nvidia's stock price could also open the door for its inclusion in the Dow Industrials – should that index committee feel the desire to add one of the world's biggest stocks to the blue chip average. The price-weighted Dow gives higher-priced stocks more influence, which makes it impossible for Nvidia to qualify at its current $1,000 price tag. However, a post-split price of $100 makes an inclusion more palatable since about one-third of the Dow's 30 stocks have share prices of around $100 or less.

What could Nvidia potentially replace in the Dow? Two tech stalwarts might be targets – fellow chipmaker Intel and networking equipment maker Cisco Systems. Both longtime Dow stocks currently have some of the smallest weightings in the index and have seen their businesses lag competitors in recent years. Those stocks have also drastically underperformed the broader market - Cisco down 3% and Intel up 7% over the past year, while the S&P 500 has risen 28%.

See the stocks moving before the bell

These are some of the stocks making the biggest premarket moves:

• Nvidia — The artificial intelligence giant jumped 7.4% on the back of its strong fiscal first-quarter results, better-than-expected guidance and 10-for-1 stock split announcement.
• Live Nation – Shares of the concert giant dropped 6% premarket after Bloomberg reported the Department of Justice and a group of states are expected to file an antitrust-related lawsuit against the company.
• News Corp — Shares popped more than 5% following the announcement late Wednesday that the media company struck a "multi-year global partnership" with OpenAI.

See the full list here.

— Alex Harring

Semiconductors follow Nvidia higher

Nvidia's big earnings beat and strong guidance lifted the broader semiconductor sector, as enthusiasm around AI continues to grow.

Super Micro Computer jumped 4% before the bell, while Micron Technology and AMD were up 3%. The VanEck Semiconductor ETF (SMH) was also higher by 3%.

— Fred Imbert

Europe stocks open higher

European stocks opened slightly higher on Thursday, with the Stoxx 600 index up 0.3% at 8:18 a.m. London time.

France's CAC 40 and Germany's DAX were both down by 0.3%.

The U.K.'s FTSE 100 bucked the trend to slip 0.1%, as traders digested a surprise election announcement and Wednesday's U.K. inflation figures, which curbed market expectations of a June rate cut.

— Jenni Reid

Japan's 10-year government bond yield hits highest in more than a decade

The yield on 10-year Japanese government bonds rose to 1.012%, the highest level since 2012 in afternoon trading.

The Bank of Japan kept its policy rate unchanged last month, holding its benchmark policy rate at 0%-0.1%. BOJ had said it would continue to conduct bond purchases in line with its March decision.

Japan shares rose, with the Nikkei 225 index up 1.31%.

— Shreyashi Sanyal

Bank of Korea holds benchmark policy rate at 3.5%

South Korea's central bank held its benchmark policy rate at 3.5% as expected by a Reuters poll.

It was the 11th consecutive meeting at which the Bank of Korea held interest rates steady. BOK said it expects the economy to grow 2.5% this year, higher than its prior forecast of 2.1%. 

It expects the speed of IT economic expansion, consumption recovery, and monetary policies of major countries to influence the South Korea's growth.  

BOK expects this year's consumer price inflation to be at 2.6%, and core price inflation at 2.2%, same as the levels it estimated in February.  

The central bank is expected to cut rates by 50 basis points in the fourth quarter, according to a Reuters poll.

— Shreyashi Sanyal

Shares of Singapore Airlines fall 1.3% after turbulent flight that left one dead

Shares of Singapore's national carrier Singapore Airlines fell as much as 1.3% on Thursday, its largest drop in more than a month.

This comes after SIA flight SQ321 encountered extreme turbulence on Tuesday, resulting in one fatality and the flight making an emergency landing in Bangkok, Thailand. Singapore's markets were closed on Wednesday.

The fatality was a 73-year-old British man, who died due to a suspected heart attack.

As of Wednesday, 58 people are still in hospital, according to local media CNA, including 20 in intensive care.

— Lim Hui Jie

Japan manufacturing activity grows for the first time in a year, private survey shows

Japan's manufacturing activity expanded for the first time in a year, while services continued to grow in May, according to a private survey.

The headline au Jibun Bank flash Japan manufacturing purchasing managers' index rose to 50.5 in May from 49.6 in April. A PMI reading above 50 signifies growth.

The flash services PMI grew 53.6 in May, down from a final reading of 54.3 in April.

Business activity expanded at its fastest pace in nine months at 52.4 in May compared with April's 52. 3.

"The expansion in business activity remained services-led, but the near-stabilization of manufacturing output offers hope of growth broadening out later in the year," the survey read.

— Shreyashi Sanyal

Stocks making the biggest moves after the bell: Snowflake, VF Corp and more

Here are some of the stocks on the move after the close:

• Snowflake — The cloud-computing company jumped more than 4%. Fiscal first-quarter revenue surpassed the Street's expectations, coming in at $829 million, versus consensus estimates for $786 million, per LSEG.
• VF Corp. — The apparel and footwear company sank nearly 12% after posting an unexpected loss for the recent quarter and revenue that fell short of Wall Street's estimates.
• LiveRamp Holdings — The advertising technology stock popped nearly 17% on its fiscal fourth-quarter results, surpassing analyst estimates, per FactSet. LiveRamp also issued strong guidance for the current quarter and full year.

Read the full list of names on the move here.

— Samantha Subin

Live Nation shares slide on Bloomberg report that DOJ aims to break up entertainment giant

Shares of Live Nation Entertainment slid 6% in extended trading after Bloomberg News reported, citing people familiar, that the Department of Justice will sue the ticketing giant for antitrust violations.

Remedies that could be on the table include a break-up of Live Nation, sources familiar told Bloomberg. The concert promoter merged with Ticketmaster back in 2010.

Earlier this month, Live Nation reported a record first quarter, with revenue climbing to $3.8 billion, up 21% from the year-ago period.

-Darla Mercado

Nvidia shares pop 6%, surpass $1,000 following strong earnings

Nvidia shares popped more than 6% to surpass the $1,000 mark for the first time ever during overnight trading following another robust quarter driven by artificial intelligence strength.

The chipmaker posted adjusted earnings of $6.12 per share, surpassing an LSEG estimate of $5.59. Revenue came in at $26.04 billion and ahead of an estimate of $24.65 billion. The company also offered strong sales guidance, saying that it anticipates sales of $28 billion for the current quarter, versus an LSEG estimate of $26.61 billion.

Nvidia also announced a 10-for-1 stock split and said that revenue surged 262% year over year during the period for a third consecutive quarter of growth exceeding 200%.

— Samantha Subin, Kif Leswing and Ashley Capoot

Nasdaq-100 futures open higher after Nvidia earnings

Nasdaq-100 futures jumped 0.4%, while S&P 500 futures added 0.2% following a strong report quarterly from chipmaker Nvidia. Futures tied to the Dow Jones Industrial Average dipped 50 points, or 0.1%.

— Samantha Subin