U.S. equities slipped on Thursday as losses in retail shares offset gains in biotech and chipmakers, while global benchmarks including the SMI followed suit.
The Dow Jones Industrial Average fell 0.7% to 53,110 points in early trade, approaching its lowest level since early August. The S&P 500 declined 0.3% to 7,683, and the tech-heavy Nasdaq 100 dropped 0.7% to 29,290. Futures on the Dow were down 0.13%, while Nasdaq futures edged up 0.1%. The Swiss Market Index (SMI) dropped 0.45%, with Logitech and Swiss Re among the largest decliners at nearly 3% each.
Moderna’s stock surged 177% on Wednesday to an intraday peak of $176.66, the highest level in more than three years. The move pushed the biotech’s shares above its 50-, 100-, and 200-day moving averages, marking a technical breakout. The Relative Strength Index (RSI) hit 92.21, the highest in the company’s history, signaling extreme overbought conditions. By Thursday, shares remained roughly 140% above Tuesday’s close despite a 17% pullback.
Walmart’s weak second-quarter results weighed on retail stocks after the bell on Wednesday. The world’s largest brick-and-mortar retailer fell 6% in pre-market trading, dragging down peers such as Costco, TJX, and Home Depot. The company cited weaker-than-expected U.S. sales, particularly in pharmaceuticals, where pricing pressure hurt margins. In contrast, agricultural equipment maker Deere & Co rose nearly 4% after beating earnings estimates and forecasting a strong 2027 for the U.S. farm sector.
Coty’s shares tumbled 16% after the cosmetics group posted quarterly results and declined to provide full-year guidance, calling the current year a transitional period. Wolfspeed, a manufacturer of silicon carbide chips, sank more than 12% in pre-market trade after reporting a 24.1% year-over-year revenue decline in its fourth quarter and a loss per share of $2.81.
Oil prices extended their advance, with Brent crude up 2.6% to $94.04 per barrel, the highest since late July, while U.S. WTI rose 2.5% to $87.95. Analysts at UBS cited elevated geopolitical risks in the Middle East as a potential drag on exports, warning of further supply tightness. The surge in crude prices reignited inflation concerns, with Brent nearing the $100 per barrel mark last seen in late July.
In the SMI, Geberit gained 1.1% following strong first-half results, while Givaudan, Amrize, and Holcim also advanced. Roche, Novartis, and Lonza rose between 0.1% and 0.4%, with Lonza benefiting from Moderna-related news. On the downside, Logitech fell 2.6% after JPMorgan downgraded its rating, citing a challenging macroeconomic environment. Swiss Re and Sika also declined by around 2%.
Analyst actions added to the volatility. UBS downgraded Aryzta to ‘Sell’ from ‘Buy’, while Berenberg cut its target for Huber+Suhner. Conversely, UBS raised its rating on Sonova, citing confidence in end markets for the hearing aid manufacturer. Centiel, a recent IPO, surged 12.8%, while Valartis jumped 15.9% on positive half-year outlook news. DocMorris rose 2.8% after reporting figures suggesting a potential break-even scenario.
