US benchmark equity indexes closed mixed Thursday, as markets assessed the latest economic data, including a report showing housing starts saw a surprise drop in May.
The Nasdaq Composite fell 0.8% to 17,721.8, while the S&P 500 slid 0.3% to 5,473.2, both retreating from their record high levels reached Tuesday. The Dow Jones Industrial Average rose 0.8% to 39,134.8. Technology saw the steepest decline among sectors, while energy paced the gainers.
US stock markets were closed Wednesday for Juneteenth.
In economic news, US housing starts unexpectedly fell last month as both multifamily building and single-family house projects skidded while permits also decreased, government data showed.
"Homebuilding activity retreated in May as elevated mortgage rates continued to weigh on demand," TD said in a note to clients. Single- and multifamily segments have now seen three to four straight months of declines in permits, indicating "further weakness is likely in the pipeline as the volume of units under construction continues to decline gradually," the brokerage said.
Weekly applications for unemployment insurance in the US declined less than market expectations, while the four-week moving average increased, government data showed.
"The softening in the job growth has, so far, been primarily driven by a deceleration in hiring via reduced labor demand," Oxford Economics said in a note. "The job openings rate has declined noticeably, but so far that hasn't translated into a significant rise in the unemployment rate."
The US 10-year yield rose four basis points to 4.26%, while the two-year rate gained 2.9 basis points to 4.73%.
Minneapolis Fed President Neel Kashkari said it could take one to two years to get consumer price inflation back down to the Fed's 2% target. Kashkari also suggested that the Federal Open Market Committee's dot plot does not adequately reflect the uncertainty that policymakers see in the softening economy right now.
West Texas Intermediate crude oil increased 0.9% to $82.34 per barrel. Commercial crude stockpiles in the US decreased by 2.5 million barrels to 457.1 million barrels through the week ended June 14, the Energy Information Administration said. The consensus estimate on Bloomberg was for a draw of 2.8 million barrels.
In company news, Jabil (JBL) shares slumped 11%, the steepest drop on the S&P 500, after the company's fiscal third-quarter core earnings and net revenue fell year over year.
Gilead Sciences (GILD) was the best performer on the S&P 500 and the Nasdaq, up 8.5%, after the drugmaker said its experimental twice-yearly Lenacapavir shot to prevent HIV was 100% effective in women in a late-stage trial.
Accenture (ACN) shares rose 7.3%, the second-top gainer on the S&P 500, as the consulting firm tightened its full-year revenue outlook on the back of lower-than-expected fiscal third-quarter results, though demand for generative artificial intelligence helped it post double-digit growth in new bookings.
Gold gained 1.1% to $2,372.30 per troy ounce, while silver jumped 4% to $31.07 per ounce.