U.S. stocks opened near flat on Thursday, hitting record highs before pausing briefly as investors cheered chipmaker Arm's outlook and looked for fresh momentum in the latest company results.
The S&P 500 (^GSPC) fell nearly 0.1% after the major benchmark ended just a few points away from reaching 5,000 for the first time in history. The Dow Jones Industrial Average (^DJI) opened just above flatline, while the tech-heavy Nasdaq (^IXIC) fell 0.1%.
Stocks rose as strong economic data and upbeat earnings lifted spirits on Wall Street, helping the benchmark S&P 500 move closer to a key psychological level. But some investors question whether the gains can be sustained, given the concentration of giant stocks that are driving the rally.
ARM stock soared more than 25% in premarket trading, fueling expectations that AI and technology will continue to fuel the market. The chipmaker issued a surprisingly bullish forecast based on its expansion into new areas. Disney (DIS) shares were also encouraged by a nearly 8% jump in shares as investors cheered the company's outperformance and its deal with Taylor Swift and Fortnite maker Epic Games. .
Meanwhile, traders scaled back bets on a March interest rate cut following warnings from central bank officials. Richmond Fed President Tom Barkin is expected to make further comments on Thursday, but the subsequent weekly jobless claims report could also move the needle on policy expectations given December's blockbuster jobs report.
read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards
Elsewhere, deflation fears in China were reignited after data showed consumer prices in the world's second-largest economy suffered their biggest fall since 2009 amid the global financial crisis.
Investors were also spooked by warnings from Danish shipping giant Maersk (AMKBY) about a slowdown in cargo shipments. The company's stock fell 15% after the company announced it would suspend stock buybacks.
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