The Wall Street losing streak continued Thursday, marking the third straight session of declines for U.S. markets. The S&P 500 fell 0.6%, while the Dow Jones Industrial Average shed 99 points and the Nasdaq composite slipped 0.9%. Although the dips were modest, the pattern signals the longest downturn in more than a month, raising questions about whether the market’s red-hot rally has reached a short-term peak.
Economic Data Weighs on Markets
Much of the pressure behind the Wall Street losing streak stems from robust economic data. Reports suggest the U.S. economy remains resilient, which may reduce the Federal Reserve’s urgency to cut interest rates. For investors hoping for cheaper borrowing costs to fuel growth, this data is a double-edged sword: strong fundamentals, but a central bank less inclined to ease.
Futures trading reflected the cautious mood. Before Thursday’s opening bell, S&P 500 futures dipped 0.3%, Dow futures eased 0.1%, and Nasdaq futures lost 0.4%. The slowdown follows an impressive rally since April, when optimism around tariffs, rate cuts, and resilient corporate earnings pushed major indexes to record highs earlier this week.
Stock Highlights Amid the Decline
Not all the news was negative. Individual stocks saw sharp swings even as the broader market dipped.
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CarMax (NYSE:KMX) plunged nearly 12% after missing Wall Street’s second-quarter profit expectations. Declining sales versus last year underscored challenges in the used-car market.
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Intel (NASDAQ:INTC) rose 2.4% on reports that Apple may invest in the chipmaker. This follows last week’s $5 billion partnership deal with Nvidia (NASDAQ:NVDA) and an earlier White House move to secure a 10% equity stake. Shares of Intel have gained more than 27% since August, as investors bet on a turnaround story.
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Birkenstock (NYSE:BIRK) climbed close to 5% after pre-announcing stronger fourth-quarter sales and reaffirming its profit guidance. The iconic sandal maker’s results suggest consumer demand remains steady despite broader macroeconomic uncertainty.
These moves highlight how specific corporate developments can shine through even during a Wall Street losing streak.
Global Markets Join the Pullback
The U.S. wasn’t alone in its retreat. European markets opened weaker, with Germany’s DAX falling 1.1%, France’s CAC 40 dropping 0.8%, and Britain’s FTSE 100 sliding 0.4%.
In Asia, reactions were mixed. Japan’s Nikkei 225 managed to close 0.3% higher after recovering from earlier losses, supported by expectations that the Bank of Japan may raise rates if growth improves. Meanwhile, Hong Kong’s Hang Seng index slipped 0.1% and China’s Shanghai Composite dipped marginally. South Korea’s Kospi fell less than 0.1%, weighed down by trade competitiveness concerns following tariff changes that benefited European automakers over Korean rivals.
Elsewhere, Australia’s S&P/ASX 200 inched up 0.1%, while India’s Sensex lost 0.4% and Taiwan’s Taiex declined 0.7%.
Looking Ahead: Key U.S. Data
The focus now turns to upcoming economic releases that could influence the Federal Reserve’s next move. Thursday brings weekly jobless claims, August existing home sales, and the final Q2 GDP estimate. On Friday, the government will release its consumer spending report, which includes the Fed’s preferred inflation gauge.
If these reports confirm economic strength, traders may reassess how many rate cuts to expect this year. That uncertainty could prolong the Wall Street losing streak in the short term, especially if valuations appear stretched after months of strong gains.
Final Thoughts
The three-day Wall Street losing streak serves as a reminder that even in bull markets, pauses are inevitable. While indexes remain near record highs, investor caution is growing as strong data complicates the Fed’s rate-cut path.
For now, the market’s direction may hinge less on corporate earnings and more on central bank policy. With mixed signals from individual stocks like Intel, CarMax, and Birkenstock, opportunities still exist—but the broader tone suggests a market catching its breath after a powerful rally.
Featured Image – Depositphotos
