Wall Street Mixed as Tech Falls and Defense Stocks Jump

US stocks fell on Thursday, mixed as investors sold technology shares and moved into defence stocks.

The Dow Jones Industrial Average edged up 0.1%, while the S&P 500 slipped 0.1% and the Nasdaq fell 0.6% as tech dragged the market lower.

Tech stocks slide

Technology was the weakest sector, down over 1.5%. Nvidia dropped more than 2%, while Apple, Microsoft, and Broadcom fell between 1% and 2%, as investors took profits after last year’s AI-led rally.

Defense stocks surge

Defense shares rallied after President Donald Trump said the 2027 US military budget should reach $1.5 trillion, well above the $901 billion approved for 2026.

Northrop Grumman jumped nearly 10%, Lockheed Martin rose about 8%, RTX gained over 4%, and Kratos Defense surged more than 16%, pushing the defense index to a record high.

Jobs and Fed in focus

Weekly jobless claims rose modestly, signaling layoffs remain limited but hiring is slowing. Markets are now focused on Friday’s December jobs report, seen as key for Federal Reserve rate decisions. Futures still point to rates staying unchanged at 3.5%–3.75%.

Treasury Secretary Scott Bessent said rate cuts remain critical for stronger growth.