On Thursday, two major stock indexes experienced a decline after reaching record highs earlier in the session. Nvidia, the world's most valuable public company, also saw a temporary pause in its record-breaking surge. The S&P 500 lost around 0.2%, briefly crossing the 5,500 level for the first time, while the tech-heavy Nasdaq Composite touched new highs before closing sharply down by almost 0.8%. On the other hand, the Dow Jones Industrial Average rose approximately 0.7%, gaining about 300 points.

The stock market struggled to maintain its winning streak in 2024 after a holiday break on Wednesday. This year, stocks' growth has mainly been fueled by excitement surrounding the potential of artificial intelligence (AI), with Nvidia capturing significant attention. However, despite a dip of over 3% on Thursday, Nvidia's stock is still up more than 170% year-to-date. The rapid ascent of Nvidia to become the most valuable company has left some passive investors struggling to keep up.

Meanwhile, global central banks were in focus, with the Swiss National Bank cutting rates for the second time this year. On the other hand, the Bank of England decided to maintain its benchmark rate at a 16-year high, but signaled a potential rate cut in the summer. In the US, most traders continue to bet on a Federal Reserve rate cut by September, as indicated by the CME FedWatch tool. In terms of economic data, the weekly jobless claims showed a minor dip of 5,000 to 238,000 last week, slightly below the consensus expectation of 235,000.

Chip stocks, including Nvidia, were among the laggards on Thursday, weighing down the Nasdaq and S&P 500. Nvidia's stock fell over 3%, while other chip companies like Broadcom, Qualcomm, and Micron also experienced declines. Conversely, energy-related stocks performed well, with the S&P 500 Energy Select ETF rising more than 2% following a slight increase in oil prices. West Texas Intermediate settled at $82.17 per barrel, while Brent reached $85.71 per barrel, contributing to the positive performance of the energy sector.

In other news, Amazon made its presence felt in the ad-supported streaming space, defaulting all its Prime Video subscriptions to include ads. This move follows similar approaches by Netflix and Disney, resulting in an expanded offering of ad-supported options for consumers and prospective ad buyers.

Looking at individual stock movements, Nvidia's stock reversed its gains from earlier in the day, falling by 4% and impacting the Nasdaq and S&P 500. Dell and Super Micro Computer also saw their shares rise after Elon Musk's xAI announced that they will be providing hardware for their AI startup's supercomputer. This highlights the market's enthusiasm for investing in AI businesses at various stages of development.

Overall, the stock market experienced a mixed trading session on Thursday, with the S&P 500 and Nasdaq Composite slipping into the red after briefly crossing key levels. Energy stocks outperformed, contributing to the S&P 500's new highs, while chip stocks faced declines. Investors continue to closely monitor global central bank decisions and anticipate future rate cuts from the Federal Reserve by September.

Disclaimer: The information presented above is based on the provided data and does not constitute financial advice. Investors should conduct thorough research and consult with professionals before making investment decisions.