U.S. stocks pulled back Thursday as investors digested blockbuster artificial intelligence (AI) earnings, rising oil prices and fresh tariff pressures, leaving Wall Street in a cautious mood after a two-day rally.
Markets Retreat Despite Strong Earnings, Oil Climbs on Iran TalksThe downturn erased part of Wednesday’s rally, when all three major benchmarks climbed on renewed optimism surrounding artificial intelligence and corporate earnings. That enthusiasm met a dose of skepticism by Thursday morning.
Economic data offered little drama but some reassurance. Initial jobless claims rose slightly to 212,000 from 208,000 the prior week, indicating a stable labor market. Unemployment remains near 4%, and forecasts still call for U.S. GDP growth of about 2.4% in 2026. That backdrop may limit the downside, even as investors navigate policy and earnings crosscurrents.
