Wall Street closed lower on Thursday as the Dow led declines while earnings guidance disappointed investors. SanDisk sold off sharply despite a strong quarter after its outlook fell short, and a separate report tied the broader pullback to the end of a six-session rally built in part on easing US-Iran tensions.
The Dow Jones Industrial Average fell 0.85% to 53,890.40 on Thursday, leading declines across Wall Street as investors turned more selective following another round of earnings. The market kept rewarding companies that comfortably beat expectations while punishing those that fell short, even when the underlying results were solid.
Other benchmarks moved more modestly. The S&P 500 slipped 0.18% to 7,710.01. The Nasdaq Composite eased 0.06% to 26,348.35. Elsewhere, the Nasdaq 100 dropped 0.39% to 29,373.33. The Russell 2000 lost 0.58% to 3,001.57 as well.
Industrial and financial names weigh on the Dow
Several heavyweight components drove most of the index's slide. Boeing dropped 3.34%, Salesforce fell 3.20%, Honeywell lost 2.95%, Goldman Sachs slid 2.62%, and UnitedHealth declined 2.14% as investors rotated away from industrial, financial, and healthcare shares.
SanDisk sinks despite a strong quarter
SanDisk reported another strong quarter, but its forward guidance failed to satisfy investors who have grown used to increasingly optimistic outlooks from AI-related companies, and the stock sold off sharply. The reaction gapped the price below both the 100-hour and 200-hour moving averages, now clustered near a moving average ceiling around $1,360.
Sellers also pushed the stock below the 50% retracement of its rally from the 2025 low, shifting the technical focus toward the 61.8% retracement near $935 as the next downside target if selling continues.
A rally built on easing Iran tensions cools
A separate report from Crypto Briefing, citing Reuters, said the pullback interrupted a six-session run of gains that had carried all three major indices to fresh records over the past week, a rally the report linked in part to easing US-Iran tensions that pushed oil prices lower.
Not every stock fell in that account: outside the Dow's own components, IBM dropped 1.89% and Cisco fell 0.86%, while Disney climbed 1.71%, Nvidia added 1.62%, and Merck gained 1.33%. Bitcoin, meanwhile, held roughly steady near $64,500 during the session, with no obvious direct link between the equity pullback and crypto prices, the report added.
The broader market remains near record territory even after Thursday's earnings-driven pullback.
Sources: Investinglive, Crypto Briefing
Trading involves risk.
Risk Disclaimer
