US stocks dipped on Thursday as the recent market rotation cooled off, even after it helped push the Dow to new highs.
The Dow Jones Industrial Average slipped about 94 points, or 0.2%, while the S&P 500 fell 0.5% and the Nasdaq slid 0.7%.
The big story before the opening bell? Cisco’s stunning premarket surge and Disney’s closely watched earnings release.
Technology stocks are regaining some footing after yesterday’s rotation into healthcare and financials, while commodity traders are keeping a close eye on gold’s continued march above $4,200 and oil’s sharp pullback.
With major companies reporting quarterly results this morning and economic uncertainty still lingering, today is shaping up to be a pivotal session for determining whether the market’s recent confidence gains will stick or fizzle.
US stock slips: What happened in premarket trading
Cisco Systems delivered the headline that caught traders’ attention this morning.
The networking giant crushed earnings expectations with adjusted EPS of $1 per share versus a consensus forecast of 99 cents, while revenue of $14.88 billion also beat estimates of $14.77 billion.
What really grabbed attention, though, was management’s commentary on AI infrastructure demand.
Cisco revealed $1.3 billion in AI orders from hyperscaler customers, massive data center operators, signaling that corporate appetite for AI-powered networking equipment remains voracious.
Shares jumped more than 7% in premarket trading on the back of the beat and raised guidance, with executives emphasizing a “multi-year, multi-billion-dollar campus refresh opportunity starting to ramp.”
Meanwhile, Disney shares were taking a different path. The media giant fell 5% in premarket trading ahead of its earnings release, a disappointing move given yesterday’s optimism in the market.
The sell-off likely reflects investor nervousness about the specific details of streaming profitability and theme park trends rather than any fundamental bad news.
Futures contracts were mixed, with the S&P 500 futures down about 0.3% while the Nasdaq-100 futures fell 0.4%, suggesting a mild pullback in tech sentiment after two days of strong gains.
Gold continued its relentless climb, breaking through $4,200 an ounce this morning as investors continue betting on the yellow metal as a hedge against inflation, geopolitical risk, and burgeoning US government debt.
That rally reflects caution underneath the surface.
Oil, meanwhile, slumped again, with West Texas Intermediate trading near $58 a barrel after a sharp selloff yesterday on signals that supply is finally catching up with global demand.
The dollar showed mixed signals, initially firming before retreating as traders remained cautious about making large positions ahead of key economic data that may or may not be released this week.
What to keep your eye on today
The earnings calendar is thick this morning.
Disney stock is expected to remain in focus, especially after the subdued Q4 earnings.
JD.com, the Chinese e-commerce giant, also reports premarket with expectations for $2.89 EPS, offering crucial insight into China’s consumer spending environment.
Any disappointing guidance could rattle the already cautious mood around emerging markets.
Beyond earnings, investors are waiting for major economic data, particularly September employment figures and inflation readings that were delayed by the shutdown.
The market consensus expects a solid open, but don’t be surprised by midday volatility once traders digest the earnings details and any economic data surprises.
The tone throughout the session will likely be dictated by Disney stock and whether Cisco’s AI strength catalyzes broader enthusiasm in semiconductors and infrastructure plays.
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