US Stock Markets Close Lower as Early Gains Evaporate

Wall Street closed in negative territory on Thursday, despite an impressive start led by technology giants Microsoft and Meta. Investor enthusiasm faded later in the session as attention shifted towards impending US employment data and a looming White House tariff deadline.

Market Performance Overview

Tech Stocks Surge, Then Fade

• Meta Platforms (Facebook parent): ▲ 11.3%
• Microsoft: ▲ 4.0% (Briefly surpassed a $4 trillion market valuation)

Both companies reported strong quarterly earnings, highlighting their dominance in artificial intelligence (AI). However, these gains failed to sustain market-wide momentum.

Market Drivers

Reevaluation of US Trade Deals

While initial reactions to President Trump’s trade deals were positive, markets are now more sceptical. The latest 15% tariff agreement with South Korea has reinforced concerns about long-term trade policy implications.

“I think the market has kind of come to grips with the idea that 15 percent is the new standard,” said Steve Sosnick of Interactive Brokers. “But maybe there’s a little bit of a realization that 15 percent tariffs are not actually all that market friendly.”

Sector Performance

• Weakest Sector: Healthcare
  • Triggered by President Trump’s renewed threats to lower drug prices using “every tool in our arsenal”
  • Notable declines:
    • Pfizer: ▼ over 2%
    • Merck: ▼ over 2%
    • Bristol-Myers Squibb: ▼ over 2%

IPO Highlight: Figma

• Figma, the online design platform, made a stellar debut on the New York Stock Exchange
  • IPO Price: $33
  • Closing Price: $115.50 (▲ More than 3×)
  • Reflects sustained investor appetite for promising tech startups

Despite strong tech earnings and a blockbuster IPO, broader market anxiety ahead of major data releases and policy deadlines ultimately pulled Wall Street lower to close the day.