S&P inches lower in early trading

U.S. stocks were mostly lower on Thursday, holding the muted momentum from the previous session as contrasting economic data (ECON) maintained the uncertainty on the room for higher earnings and the magnitude of cuts by the Federal Reserve. The S&P 500 is slightly below the flatline and the Nasdaq fallen a sharper nearly 1% in early trading. Heavyweight tech companies mostly held their pullback from last session, remaining under closer scrutiny after speculative bets on higher AI implementation worldwide drove software and datacenter infrastructure carried equity returns last year. Meanwhile, defense companies have surged after President Trump announced the U.S. military budget would rise to $1.5 trillion for 2027, extending the sector’s recent push on the capture of Venezuelan President Maduro and the White House’s hawkish rhetoric on Greenland.