S&P 500 Retreats from Record High; EA Stock Plunges on Weak Forecast

S&P 500 Pulls Back as Tech Drags, EA Slumps on Guidance

The S&P 500 slipped 0.1% Thursday after hitting an intraday record earlier this week. The Dow Jones Industrial Average gained 0.2%, while the Nasdaq Composite lagged, falling 0.4%. Tech weakness weighed on the broader market, with Nvidia and Amazon among the notable laggards. Meanwhile, Electronic Arts plunged as its revised outlook disappointed investors, while traders kept an eye on Treasury yields and upcoming economic updates.

What Drove Sector Performance on Thursday?

Energy and industrials led sector gains, rising 1% and 0.72%, respectively, supported by strength in oil prices and positive earnings in transportation. Financials also gained 0.56%, buoyed by a favorable start to the banking sector’s earnings season.

Technology stocks were under pressure, down 0.69%, with semiconductor names leading the retreat. Applied Materials, Micron Technology, and Lam Research each dropped more than 3%. Consumer discretionary also struggled, declining 0.37%, as concerns over weaker retail guidance weighed on the sector.

Why Did Electronic Arts Tumble?

Electronic Arts was a major underperformer, dropping 16% after cutting its outlook. The company pointed to slowing demand for its soccer gaming franchise and underwhelming results from its role-playing games during a critical holiday season. EA now expects mid-single-digit declines in live services net bookings, a critical revenue driver.

The stock decline reflects broader concerns about gaming trends and weaker-than-expected consumer demand, raising questions about EA’s ability to sustain growth across its flagship franchises.

How Are Musk-Linked Companies Performing?

Elon Musk’s Tesla remained relatively stable Thursday despite broader tech pressure. However, its recent momentum, driven by price cuts and production updates, is beginning to face resistance as traders look for more clarity in upcoming earnings. SpaceX, Musk’s private aerospace venture, continues to draw investor interest, with reports of successful launches keeping sentiment strong.

What Economic Data Caught Attention?

Weekly jobless claims totaled 223,000, slightly above expectations. Continuing claims rose to nearly 1.9 million, marking their highest level in over three years, suggesting that laid-off workers are taking longer to find employment. Treasury yields also moved higher, with the 10-year yield climbing 5 basis points to 4.65%, maintaining pressure on growth stocks.

What’s Next for Traders?

Investors will closely monitor President Donald Trump’s virtual remarks at the World Economic Forum for potential comments on tariffs or trade policies. Attention will also turn to upcoming earnings from key players in the technology and industrial sectors, as well as GDP data expected next week.

The market remains focused on sector-specific trends, particularly in technology and consumer stocks, while keeping an eye on broader economic developments that could shape investor sentiment in the coming days.

More Information in our Economic Calendar.