After failing to sustain an early upward move, stocks have moved mostly lower over the course of the trading day on Thursday. The major averages have all pulled back into negative territory, partly offsetting the gains posted in the previous session.
The downturn by the markets was partly due to the release of a report from the Commerce Department showing an unexpected drop in new home sales, with the disappointing data offsetting some of the recent optimism about the economic outlook.
Financial stocks have shown a notable move to the downside on the day, as some traders look to cash in on recent strength in the sector. Online broker E*Trade (ETFC) is posting a particularly steep loss after reporting an unexpected fourth quarter loss.
Significant weakness is also visible among electronic storage stocks, as reflected by the 3.3 percent loss being posted by the NYSE Arca Disk Drive Index. Natural gas, health insurance, housing, and oil stocks are also posting notable losses.
On the other hand, airline, trucking, and gold stocks are holding on to strong gains, helping to limit the downside for the markets.
The major averages are currently posting moderate losses, near their lows for the session. The Dow is down 24.75 points or 0.2 percent at 12,732.21, the Nasdaq is down 14.99 points or 0.5 percent at 2,803.32 and the S&P 500 is down 8.68 points or 0.7 percent at 1,317.37.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.