US stocks ended in negative territory on Thursday as investors, left with no economic data or any sentiment-swaying catalysts, took the opportunity to consolidate ahead of third-quarter earnings season.

The S&P 500 and the Nasdaq inched back from Wednesday's record closing highs, while the blue-chip Dow Jones closed with the deepest percentage decline.

The S&P 500 lost 0.3 percent to 6,735, while the Nasdaq slipped 0.1 percent to 23,024. The Dow Jones fell 0.5 percent to 46,358.

The stock market's pause comes amid a steep rally that has been largely driven by the rise of artificial intelligence technology. The run-up has prompted concerns that a bubble is forming, which could be a harbinger of an impending correction.

Sunday will mark the current bull market's third anniversary; the benchmark S&P 500 touched the nadir of its current market cycle on October 12, 2022 on the heels of monetary tightening from the Fed.

Over that time period, while tech and tech-adjacent mega-stocks have driven the index nearly 90 percent higher, history suggests the current bull market has more gas in its tank.

The US government shutdown entered its ninth day, with few signs of progress. Consequently, market participants continue to be deprived of essential economic data.

And with the start of third-quarter earnings season just days away, the scarcity of market-moving catalysts is focusing investors' attention on remarks from monetary policymakers for clues regarding the central bank's rate cut intentions through the end of the year.

New York Federal Reserve President John Williams favours more interest rate reductions before year-end due to risks facing the weakening labour market, he said in an interview with the New York Times published on Thursday.

Financial markets are currently pricing in a 94.6 percent likelihood that the Fed will implement a 25 basis-point interest rate cut at the conclusion of its October 28-29 meeting, according to CME's FedWatch tool. (Reuters)