Stock market news for June 20, 2024

The S&P 500 pulled back on Thursday after briefly passing the 5,500 level for the first time ever as market bellwether Nvidia gave up earlier gains.

The broad market index fell 0.25% to end at 5,473.17. Earlier in the session, the S&P 500 rose as much as 0.34% to hit a new high. The Nasdaq Composite dropped 0.79% to finish at 17,721.59. The Dow Jones Industrial Average jumped 299.90 points, or 0.77%, to close at 39,134.76.

“Seasonally adjusted, it’s a low volume period for markets and there doesn’t seem to be a whole lot driving things on a day-to-day basis,” said Nathan Kotler, head of trading at GenTrust. “You’re starting to see some signs of getting a little bit overextended, but there’s been an incredible amount of momentum which has continued this week.”

Nvidia declined 3.5% after rising earlier in the session. The chipmaker temporarily unseated Microsoft as the most valuable public company on Tuesday. Shares have climbed more than 160% this year as the AI boom continues to boost equities even as consumers show slowing signs of spending.

Darden Restaurants edged up 1.5% after topping earnings expectations. Gilead Sciences popped about 8.5% and notched its best day since 2022 following a successful late-stage trial of its HIV prevention shot.

Stocks are headed for a winning week, with the S&P 500 and Nasdaq notching new records. The stock market was closed Wednesday for the Juneteenth holiday.

Excitement around AI has continued push the market higher in recent weeks even as some on Wall Street raise concern over a lack of market breadth outside the technology behemoths that could worsen.

Meanwhile, fresh economic data contributed to the argument that the economy is softening. That data included higher-than-expected weekly jobless claims and poor housing starts and permits. A reading of the Philadelphia Fed Manufacturing Index also came in below estimates.