US equity markets retreated on Thursday as investors digested softer-than-expected retail sales data, signaling a deceleration in consumer spending momentum.
The broad-based S&P 500 index declined 0.4% to close at 7,543.96, while the tech-heavy Nasdaq Composite suffered a sharper 0.8% drop to 26,051.43.
In contrast, the Dow Jones Industrial Average managed a modest 0.2% gain, trading at 52,751.45 in early sessions before settling lower.
The sell-off was driven by growing skepticism regarding the valuation multiples of artificial intelligence-linked stocks.
With consumer spending showing signs of fatigue, investors are increasingly questioning whether current tech valuations are sustainable without robust underlying demand growth.
This repricing reflects a broader shift in market sentiment, where the focus is moving from growth narratives to fundamental earnings support.