NEW YORK, New York - U.S. stocks lost ground Thursday following the setting of new record highs by the Nasdaq Composite, and Standard and Poor's 500 a day earlier.  The Dow Jones index took the biggest hit Thursday, shedding more than 200 points.

"Obviously the market has had a relentless surge from the April meltdowns that keep showing signs that some people believe that the stock market is overheated, making calls for some type of breather at a time when the classic dip buying strategy continues to remain firmly in place," David Wagner, head of equities at Aptus Capital Advisors told CNBC Thursday. "This market just continues to grind up. It's just some under-the-hood rotation going on that can cause some intraday volatility or effect."

All the major U.S. stock indexes closed in negative territory on Thursday, with the Dow Jones Industrial Average leading the decline amid a broad market pullback.

The Standard and Poor's 500 (^GSPC), a broad benchmark for the U.S. equity market, dipped 18.61 points to close at 6,735.11, a decline of 0.28 percent. The index traded between a session high of 6,764.58 and a low of 6,716.17.

The Dow Jones Industrial Average (^DJI) faced more significant selling pressure, falling 243.36 points, or 0.52 percent, to finish the session at 46,358.42.

The tech-heavy NASDAQ Composite (^IXIC) showed relative resilience, posting a more modest loss. The index declined by 18.75 points, a slight drop of 0.08 percent, settling at 23,024.63.

The day's losses were attributed to a mix of profit-taking after recent gains and investor caution as investors and traders assessed new economic data and corporate earnings reports. The market's focus now turns to upcoming economic indicators for further clues on the health of the U.S. economy.

U.S. Dollar Flexes Muscles in Thursday Trading, Pressuring Major Rivals

The U.S. dollar posted broad gains in the foreign exchange market on Thursday, strengthening against a basket of major currencies as market sentiment drove demand for the greenback.

The euro faced significant selling pressure, with the EUR/USD pair falling 0.59 percent to change hands at 1.1559. The British pound also tumbled against the resilient dollar, as the GBP/USD pair dropped 0.80 percent to 1.3294.

The dollar's ascent was particularly notable against the Japanese yen, a closely watched pair. The USD/JPY climbed 0.30 percent to reach 153.13, maintaining its position at a multi-decade high.

Commodity-linked currencies, often sensitive to global risk appetite, struggled against the dollar's strength. The Australian dollar fell, with the AUD/USD pair declining 0.54 percent to 0.6550. The New Zealand dollar saw an even steeper drop, as the NZD/USD pair sank 0.77 percent to 0.5742.

The dollar also registered strong gains against its North American counterpart. The USD/CAD pair rose 0.56 percent to 1.4028, reflecting a weaker Canadian dollar. Similarly, the USD/CHF pair advanced 0.62 percent to 0.8065, indicating the dollar's strength over the traditionally safe-haven Swiss franc.

Analysts attributed the dollar's robust performance to shifting expectations for interest rates and a general flight to safety amid ongoing geopolitical tensions. The consistent rise in USD/JPY continues to draw attention, with markets watching for any potential intervention from Japanese monetary authorities to support the yen.

Global Markets Present a Mixed Picture as European Shares Dip While Asia Rallies

Global stock indices delivered a fragmented performance in Thursday's trading session, with Canadian, UK and European markets largely retreating while several major Asian bourses posted strong gains. The stand0out though was the Tel Aviv bourse which surged nearly 3 percent, following the Trump-led ceasefire deal between Hamas and the Jewish state.

Canada's main stock index experienced a steeper slide. TheS&P/TSX Composite Index(^GSPTSE) fell 232.01 points, or 0.76 percent, closing at 30,269.98.

In London, the benchmark FTSE 100 (^FTSE) closed at 9,509.40, declining by 39.47 points or 0.41 percent. The day's trading saw the index fluctuate between a high of 9,565.49 and a low of 9,501.09.

The mood was similarly cautious across continental Europe. Germany's DAX (^GDAXI) eked out a minor gain, adding 14.12 points to finish at 24,611.25, an increase of 0.06 percent. In contrast, France's CAC 40 (^FCHI) fell 18.77 points, or 0.23 percent, to settle at 8,041.36. The broader EURO STOXX 50 (^STOXX50E) dropped 24.17 points, down 0.43 percent to 5,625.56.

The Euronext 100 (^N100) also finished in negative territory, losing 8.69 points for a 0.51 percent decline to 1,687.77. Belgium's BEL 20 (^BFX) was a rare bright spot in the region, climbing 19.25 points, or 0.39 percent, to close at 4,959.53.

Asian Markets Surge Led by Japan and South Korea

Asian markets told a different story, with several indices recording significant advances. Japan's Nikkei 225 (^N225) was a standout performer, soaring 845.45 points, or 1.77 percent, to close at 48,580.44. South Korea's KOSPI (^KS11) was the day's biggest gainer, jumping 93.38 points—a substantial 2.70 percent—to finish at 3,549.21.

Taiwan's TWSE Index (^TWII) rose 0.88 percent, adding 238.24 points to reach 27,301.92. Mainland China's SSE Composite Index (000001.SS) also had a strong session, gaining 51.20 points, or 1.32 percent, to end at 3,933.97.

The Hang Seng Index in Hong Kong was a notable exception, dipping 76.87 points, or 0.29 percent, to close at 26,752.59.

Elsewhere in Asia, India's BSE SENSEX (^BSESN) continued its upward trend, climbing 398.45 points, or 0.49 percent, to a new high of 82,172.10. Indonesia's IDX Composite (^JKSE) rose 1.04 percent to 8,250.94, while Malaysia's FTSE Bursa Malaysia KLCI (^KLSE) saw a modest gain of 0.13 percent.

Pacific and Other Regional Indices

In the Pacific, Australia's S&P/ASX 200 (^AXJO) advanced 22.20 points, a 0.25 percent increase, to close at 8,969.80. The broader All Ordinaries index (^AORD) gained 31.80 points, or 0.34 percent, settling at 9,276.60. New Zealand's S&P/NZX 50 (^NZ50) was nearly flat, inching up just 0.02 percent to 13,570.86.

Middle East

In the Middle East, in the wake of its ceasefire deal with Hamas, Israel's TA-125 (^TA125.TA) surged 93.45 points, a sharp 2.86 percent increase, closing at 3,358.13. Egypt's EGX 30 (^CASE30) also finished higher, gaining 0.75 percent.

Africa

The session's lone decliner in the African markets was the JSE All Share  JNOU.JO in South Africa, which fell 0.71 percent to 6,459.09.

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