US stocks closed lower Thursday, as the major indexes struggled to build on the previous day's surge amid another round of big bank earnings and a slide in tech stocks. Investors also watched the Capitol Hill confirmation hearing of President-elect Donald Trump's pick for Treasury Secretary, Scott Bessent.

The S&P 500 ( ^GSPC ) fell about 0.2% while the Dow Jones Industrial Average ( ^DJI ) slipped more than 0.1%. The tech-heavy Nasdaq Composite ( ^IXIC ) fell almost 0.9%, leading the way down, as several large-cap tech stocks like Nvidia ( NVDA ) and Tesla ( TSLA ) underperformed.

Markets were coming off a major one-day rally on the heels of a surprise easing in consumer inflation that prompted questions about whether the pricing out of interest-rate cuts this year had gone too far. Stocks ripped higher on Wednesday on the back of the data and stellar earnings from major US lenders.

Traders have now ramped up bets that the Federal Reserve lowers rates before July, reversing the pile-out that was sparked by the stronger-than-expected December jobs report.

Retail sales for December grew by 0.4%, versus expectations of 0.6%. The monthly gain slowed from November’s 0.7% increase.

Meanwhile, Bank of America ( BAC ) results showed fourth quarter profit more than doubled as the bank benefitted from a Wall Street dealmaking revival that has also boosted earnings at its rivals . Its shares were down less than 1% on the day. Morgan Stanley's ( MS ) stock rose more than 4% after it posted a surge in quarterly profit before the bell.

Elsewhere in earnings, UnitedHealth's ( UNH ) fourth quarter revenue fell short of estimates, dented by weakness in its health insurance unit. The stock slid about 6%.

Also taking focus Thursday was the Senate Finance Committee hearing on Bessent's confirmation. Some of the topics touched upon during the meeting included tariffs, debt concerns and tax plans.

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