Investing.com-- The S&P500 closed lower Thursday, giving up gains as Alphabet-led slump put the brakes on a tech rebound despite growing hopes for the Federal Reserve may deliver multiple rate cuts this year.
At 16:00 ET (20:00 GMT), the Dow Jones Industrial Average rose 81 points, or 0.20%, while the S&P 500 fell 0.5%, and NASDAQ Composite slipped 0.9%.
Alphabet slip weighs on tech rebound; IBM , ServiceNow rise
Alphabet Inc Class A (NASDAQ:GOOGL) fell more than 3%, pressuring the rebound in tech amid worries that its search business is set for fierce competition from OpenAI's Search GPT.
OpenAI said Thursday that it is testing a AI powered search engine as the AI software maker looks to take the fight to Alphabet's Google.
International Business Machines (NYSE:IBM) rose rose more than 4% after big blue talked growing demand for its AI offering and lifted its annual cash flow guidance.
"Management highlighted that the GenAI book of business has grown to over $2B since watsonx launched a year ago, ahead of expectations in our view," RBC said in a recent note.
ServiceNow Inc (NYSE:NOW) jumped 13% after the software marker reported quarterly results late-Wednesday that topped Wall Street and lifted its annual guidance.
The strong results in the quarter for Service now "look sustainable given the prioritization of back-office solutions in 2024 IT budgets and growing adoption of non-Technology workflow solutions," Oppenheimer said in note.
Tesla (NASDAQ:TSLA), meanwhile, climbed more than 1% after posting its biggest one-day slump since in nearly four year after its recent weak quarterly results.
Q2 GDP data shows strength, prices fall
U.S. gross domestic product grew 2.8% in the second quarter, versus forecasts of a 2% growth, and an improvement from the 1.4% growth sen in the first three months of the year.
However, the prices component, an inflation guage, in the release saw a fall to 2.3%, from 3.1% in the first quarter
Further signs of slowing inflation have underpinned growing hopes that the Federal Reserve could cut rates more than once this year starting in September.
A separate report showed durable goods orders fell 6.6% in June, compared with expectations for a 0.3% rise.
American Airlines, Ford, Hasbro continue earnings wave
American Airlines (NASDAQ:AAL) rose more than 4% even as the carrier cut its annual profit forecast, pressured by weaker pricing power amid uneven demand trends and overcapacity in certain markets.
Hasbro (NASDAQ:HAS) rose 3% after the toy maker posted a smaller-than-expected drop in second-quarter as steady digital gaming demand offset a slump in toy sales, while cost-control strategies helped it beat profit expectations.
Ford (NYSE:F) slumped over 18% after clocking disappointing earnings, as automobile sales slowed sharply amid decreased consumer spending.
Lineage climbs on US trading debut
Lineage Inc (NASDAQ:LINE) climbed more than 3% on its Nasdaq debut to close at $80.65, above its opening price of $82.20.
The cold storage company priced its initial public offering at $78 per share.
(Peter Nurse, Ambar Warrick contributed to this article.)