Wall Street slips as retail sales growth cools, AI stock valuation concerns weigh on markets

Wall Street's major stock indices traded lower on Thursday as investors digested softer-than-expected retail sales data and growing concerns over the stretched valuations of artificial intelligence-linked stocks.

As of 10 a.m. Eastern Time, the S&P 500 fell 0.3%, the Dow Jones Industrial Average was down less than 0.1%, and the Nasdaq Composite was 0.9% lower.

In the early trading, the Dow Jones Industrial Average was up 0.2% at 52,751.45. The broad-based S&P 500 declined 0.4% to 7,543.96, while the tech-rich Nasdaq Composite Index dropped 0.8% to 26,051.43.

Fresh economic data showed US retail sales rose 0.2% in June from the previous month, matching economists' forecasts but slowing significantly from the revised 1.0% increase recorded in May.

Despite the moderation, analysts said the figures still pointed to resilient consumer demand. They noted that lower gasoline prices during the month likely reduced the overall value of retail sales, suggesting household spending remained relatively healthy even as headline growth eased.

Earlier this week, Wall Street found renewed optimism as a wave of benign inflation data for June successfully quieted mounting fears over aggressive Federal Reserve monetary tightening.

In the bond market, the 10-year Treasury yield rose to 4.58% from 4.55% on Wednesday.

Key Stock Movers

UnitedHealth Group emerged as one of the top gainers on Thursday, with its shares jumping 7.8% after the health insurer raised its profit forecast for 2026, boosting investor confidence in its earnings outlook.

Technology stocks, particularly semiconductor companies, remained under pressure, extending losses from the previous trading session. Nvidia fell 2.3%, while US-listed shares of TSMC declined 2.5%, despite the Taiwanese chipmaker posting stronger-than-expected quarterly earnings.

Storage chip makers also witnessed broad-based selling. Western Digital and Seagate Technology each tumbled 7.3%, while Micron Technology dropped 4.8% as weakness across the semiconductor sector continued.

United Airlines slipped 2.8% after a renewed rise in crude oil prices clouded the airline's profit outlook for the third quarter, raising concerns over higher fuel costs.

Meanwhile, GE Aerospace fell 4.4% even after the jet-engine manufacturer increased its 2026 profit guidance, with investors appearing to book profits despite the improved earnings forecast.

Energy Market

Crude oil prices rose on Thursday as concerns over energy supplies increased after the Iran war escalated with intensifying strikes in the Middle East.

At 1420 GMT, Brent crude futures were up 93 cents, or 1.09%, to $85.88 a barrel. US West Texas Intermediate futures were up 89 cents, or 1.12%, to $80.49 a barrel.

Bullion

Gold prices fell on Thursday on escalating Gulf tensions.

By 0926 a.m. EDT (1326) GMT, spot gold was down 1.5% at $4,001.17 per ounce. US gold futures dropped 1.1% to $4,005.20.

Among other metals, spot silver dropped 2.8% to $56.17 per ounce, platinum slid 0.9% to $1,658.65, and palladium dipped 2.7% to $1,279.25.