Stock Market Today: AI Stock Ends Rally, Homebuilders Fall

The Dow Jones Industrial Average and other major indexes weakened in the final hour of trading Thursday and failed to mount a significant recovery after Wednesday's massive sell-off.

The Dow Jones Industrial Average and other major indexes pared gains in the final hour of trading Thursday and failed to mount a significant recovery after Wednesday's massive sell-off. But Nvidia (NVDA) stock managed to show some dominance and climbed higher.

The Dow Jones index barely finished ahead and ended its 10-day losing streak with a fractional gain following Wednesday's 2.6% drop. Blue chips still sit firmly below their 50-day moving average.

The benchmark S&P 500, however, ended up marginally lower, giving back all its gains from earlier in the session. The S&P fell 3% Wednesday and undercut its 50-day line.

The Nasdaq composite reversed and ended up 0.1% lower after losing 3.5% in the prior session. The tech-heavy index is now just under its 21-day exponential moving average but above its 50-day line.

Small caps on the Russell 2000 finished 0.3% lower, adding to Wednesday's 4.4% loss. The index is 4% below its 50-day line.

Volume was lower on both the New York Stock Exchange and Nasdaq vs. the same time Wednesday.

On the Nasdaq exchange, falling stocks topped rising issues by roughly 5-to-4, while on the New York Stock Exchange, losers beat gainers around 2-to-1.

Bitcoin retreated 4.5% to just under the $96,900 level. The 10-year Treasury yield added seven basis points to 4.57%. And U.S. crude oil fell around 1% to $69.85 a barrel.

Stock Market Today: AI Stock Ends Rally

SoundHound AI (SOUN) reversed 9.6% lower in heavy volume after reaching a record high Wednesday. The stock has had an explosive run since it bounced off its 10-week moving average in early November. SoundHound develops voice artificial intelligence used by the restaurant and healthcare industries.

Nike (NKE) rose 0.3% ahead of its fiscal second-quarter earnings report due out after the market close.

And Tesla (TSLA) ended up losing nearly 1% on top of an 8.3% deficit Wednesday. The electric-vehicle maker earlier was 2% higher before surrendering its gains.

3:23 p.m. ET

Bitcoin Stocks

Bitcoin's sharp drop Thursday afternoon pulled down some cryptocurrency and related stocks, including IBD 50 names Hut 8 (HUT) and Coinbase Global (COIN).

Hut 8 tumbled nearly 9%, as shares of the crypto mining stock further deteriorated following Wednesday's 11.8% decline. Hut 8 undercut its 21-day line after closing just below it Wednesday.

Coinbase stock lost more than 2% and is on track for three straight days of selling. Similarly, the bitcoin stock is deep beneath its 21-day line but remains above its 50-day line for now.

MicroStrategy (MSTR) ceded more than 6% and is on track for its fourth straight day of losses. The company is the largest corporate holder of bitcoin. Shares are around 11.3% below their 21-day line and are heading toward the 50-day line.

In other news, Nvidia stock advanced nearly 2% after five straight days of losses, but the artificial intelligence leader remains under its 50-day and 21-day lines. The Dow Jones component has fallen more than 7% below its 140.76 buy point from an irregular base, and recently triggered a sell rule.

1:53 p.m. ET

Stock Market Today: C3.ai Stock Tanks, Homebuilders Fall

C3.ai (AI) skidded in heavy trading, adding to Wednesday's 7.4% loss. The plunge came after KeyBanc downgraded the stock to underweight from sector weight and set a price target of 29. The AI service provider undercut its 21-day line but stopped short of its 50-day line.

Conversely, Oklo (OKLO) soared on news Wedbush began coverage on the nuclear power company with an outperform rating and a 26 price target.

Cintas (CTAS) slid sharply, falling further below its 50-day line and slicing through its 200-day line. The move came following the company's disappointing revenue outlook. The uniform rental provider is on pace for its largest drop since March 23, 2020, when it fell 10.3%.

Many homebuilder stocks continue to sell off and are in their third straight week of losses. Selling picked up