US stock markets moved lower on Thursday, extending recent losses as a rebound in oil prices and rising Treasury yields renewed pressure on equities despite another strong earnings performance from Nvidia, according to the Associated Press.
Market Performance
The S&P 500 slipped 0.4 percent and was on course for a fourth decline in five sessions after recently touching a record high. The Dow Jones Industrial Average fell 253 points, or 0.5 percent, while the Nasdaq Composite was down 0.4 percent in early trade.
Markets have slowed in recent sessions as momentum in artificial intelligence-linked stocks cooled after a sharp rally over the past year. Even Nvidia's stronger-than-expected quarterly results failed to provide a broad market boost.
Nvidia Earnings
The chipmaker reported better-than-expected profit and revenue for the latest quarter and projected revenue for the current quarter above analysts' estimates.
"The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed," Nvidia CEO Jensen Huang said.
Nvidia shares swung between gains and losses before rising 1.1 percent.
Some analysts said the relatively muted market reaction could reflect investors taking profits after Nvidia shares had climbed nearly 70 percent over the previous year, compared with a 27 percent gain in the S&P 500.
Oil Prices and Bond Yields
Pressure increased across Wall Street after Brent crude prices rose 3.4 percent to $108.54 a barrel, reversing part of this week's earlier declines. Oil prices have remained volatile amid uncertainty over how long the Iran conflict could affect the Strait of Hormuz, a critical route for global crude shipments.
Fresh labour market data also suggested the US economy remained more resilient than expected despite elevated energy prices and inflation concerns. Weekly unemployment benefit applications unexpectedly declined, indicating fewer layoffs.
Higher oil prices and stronger economic indicators also pushed Treasury yields higher. The yield on the benchmark 10-year Treasury climbed to 4.61 percent from 4.57 percent on Wednesday. Higher bond yields can increase borrowing costs for mortgages and corporate investments, including spending on AI-related infrastructure projects that have supported recent economic growth.
Individual Stocks
Among individual stocks, Walmart fell 5.9 percent after reporting another quarter of strong revenue growth but issuing weaker-than-expected profit guidance.
Global Markets
Elsewhere, markets showed mixed performances globally. South Korea's Kospi surged 8.4 percent, supported by technology stocks. Samsung Electronics jumped 8.5 percent after its labour union and management reached an agreement that avoided a potentially costly strike, while SK Hynix rose 11.2 percent.
Japan's Nikkei 225 climbed 3.1 percent after data showed exports increased nearly 15 percent in April from a year earlier. However, Hong Kong's markets fell 1 percent and Shanghai declined 2 percent.
