Today’s Stock Market: Wall Street Loses Momentum Following Record-Breaking Day

U.S. stocks are experiencing a slight dip on Thursday as Wall Street takes a breather after reaching record highs. The S&P 500 is down 0.1%, the Dow Jones Industrial Average is up 0.2%, and the Nasdaq composite is down 0.2%.

Retailers like Big Lots and Five Below are facing challenges as their customers, particularly those with lower incomes, are cutting back on spending. Big Lots reported a larger loss than expected, while Five Below fell short of analysts’ expectations for profit and revenue.

The divide between lower and higher-income customers is becoming more apparent as inflation continues to impact those at the lower end. This could potentially affect the strong spending by U.S. households, which has been a key factor in keeping the economy afloat.

On the job market front, there are signs of potential softening as more U.S. workers applied for unemployment benefits last week. This could indicate a slowdown in the job market, which Wall Street is hoping for in order to drive inflation lower and prompt the Federal Reserve to cut interest rates.

In other news, Robinhood Markets announced its agreement to buy Bitstamp, a cryptocurrency exchange, while Lululemon Athletica and J.M. Smucker reported better-than-expected profits.

Overall, the market is eagerly awaiting the U.S. government’s monthly update on the job market, with economists expecting slight accelerations in hiring and wage gains. The Federal Reserve is not expected to make any moves on interest rates at its upcoming meeting, but there is hope for a rate cut later in the year.