U.S. stocks ended mixed on Thursday, with the Dow and the S&P 500 giving up their gains, as investors assessed President Donald Trump’s plans to impose hefty tariffs on chip imports and digested the latest batch of corporate earnings. However, the Nasdaq closed at a record high.
The Dow Jones Industrial Average (DJI) shed 0.5% or 224.48 points to close at 43,968.64 points.
The S&P 500 declined 0.1%, or 5.06 points, to end at 6,340 points. Financials and healthcare stocks were the worst performers, while utilities and consumer staples stocks were the biggest gainers.
The Financials Select Sector SPDR (XLF) lost 1.1%, while the Healthcare Select Sector SPDR (XLV) fell 1.2%. The Consumer Staples Select Sector SPDR (XLP) gained 0.8%, while the Utilities Select Sector SPDR (XLU) gained 1.1. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq jumped 0.4%, or 73.27 points, to finish at 21,242.70 points.
The fear gauge CBOE Volatility Index (VIX) was down 1.19% to 16.57. Decliners outnumbered advancers on the NYSE by a 1.01-to-1 ratio. On the NYSE, there were 232 new highs and 80 new lows.
On the Nasdaq, a 1.35-to-1 ratio favored declining issues as 1,944 stocks hit new highs and 2,622 hit new lows. A total of 17.40 billion shares were traded on Thursday, lower than the last 20-session average of 18.23 billion.
Thursday saw a volatile trading session, with all three major indexes making sharp swings. The Dow rose more than 300 points at its session high before giving back all its gains.
Caterpillar Inc. (CAT) was the biggest drag on the blue-chip index. The construction equipment maker missed earnings estimates and cited tariffs as a major reason impacting its business.
Caterpillar’s shares ended 2.5% lower after it reported second-quarter 2025 earnings of $4.72 per share, missing the Zacks Consensus Estimate of $4.88 per share. Caterpillar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Eli Lilly and Company (LLY) took a major hit on Thursday and weighed on the Dow despite the company beating on earnings. The pharmaceutical giant reported second-quarter 2025 earnings of $6.31 per share, surpassing the Zacks Consensus Estimate of $5.61 per share.
However, its shares plummeted 14.1% after the late-stage trial of its orforglipron drug disappointed investors.
Stocks initially rose on Thursday after Trump announced late Wednesday that he plans to impose 100% tariffs on semiconductor imports but would exempt chipmakers that manufacture in the United States. Shares of Advanced Micro Devices, Inc. (AMD) jumped 5.7%.
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