US equity markets are showing signs of exhaustion after a prolonged rally driven largely by enthusiasm for artificial intelligence.
The Dow Jones Industrial Average traded nearly flat at 52,699 points, while the broader S&P 500 and Nasdaq Composite also lost momentum, reflecting a cautious stance among investors following recent inflation data.
The shift in sentiment marks a distinct pause in the market's upward trajectory.
After months of record highs fueled by tech sector strength, traders are now taking profits and reassessing valuations.
The lack of clear directional catalysts has left indices range-bound, with buying interest waning in the absence of fresh positive news.
This consolidation phase comes as investors digest recent US inflation figures, which have not provided a clear signal for Federal Reserve policy moves.