Wall Street closed lower on Thursday, pulled down by health care and real estate stocks. Investor mood remained cautious about the tariff negotiations conducted by the Trump administration and the Fed’s refusal to commit to rate cuts. All three benchmark indexes closed in the red.
The Dow Jones Industrial Average (DJI) slid 0.7%, or 330.3 points, to close at 44,130.98. Twenty-two components of the 30-stock index ended in negative territory, while eight ended in positive.
The tech-heavy Nasdaq Composite fell 7.23 points, remaining virtually unchanged at 21,122.45.
The S&P 500 lost 23.51 points, or 0.4%, to close at 6,339.39. Eight of the 11 broad sectors of the benchmark index closed in the red. The Health Care Select Sector SPDR (XLV), the Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) declined 2.8%, 1.8% and 1.3%, respectively, while the Communication Services Select Sector SPDR (XLC) gained 0.9%.
The fear gauge CBOE Volatility Index (VIX) increased 8% to 16.72. A total of 19.65 billion shares were traded on Thursday, higher than the last 20-session average of 18.01 billion. Decliners outnumbered advancers by a 1.55-to-1 ratio on the NYSE, and by a 1.98-to-1 on the Nasdaq.
On Thursday, investor sentiment on Wall Street continued to be cautious as renewed concerns over interest rates and ongoing tariff negotiations between the United States and China weighed heavily on the markets. Investors grappled with signals from the Fed that rate cuts may not come as quickly or as deeply as previously hoped. Recent economic data, including stubbornly strong labor market indicators and lingering inflationary pressures, reinforced the perception that the Fed would maintain a hawkish stance, leaving borrowing costs elevated for longer. This expectation curbed enthusiasm across interest-rate-sensitive sectors and added pressure on equities overall.
Simultaneously, the mood was further soured by an apparent lack of meaningful progress in U.S.-China tariff talks. While there had been some early optimism about diplomatic engagement, reports indicated that negotiations remained bogged down over structural issues and enforcement mechanisms. The uncertainty surrounding potential new tariffs or a re-escalation of trade tensions created a risk-off environment, especially for companies with significant international exposure.
Donald Trump’s letter to 17 major drug manufacturers reignited concerns over potential political pressure on the pharmaceutical industry. In the letter, Trump criticized high prescription drug prices and urged companies to lower costs and increase transparency. The message stirred fears that drug pricing could become a major election issue, potentially leading to regulatory action if political momentum builds. The letter weighed on healthcare stocks, with several pharmaceutical shares slipping as investors braced for renewed scrutiny.
Story Continues
