Wall Street ended mixed on Thursday, as Nvidia and other technology stocks dipped, while defence companies advanced after US President Donald Trump called for an enlarged US$1.5 trillion military budget.

Nvidia slid 2.2 percent, Broadcom declined 3.2 percent and Microsoft dipped 1.1 percent. The S&P 500 technology index lost 1.5 percent as investors grew more finicky about AI-related stocks whose valuations have been inflated by outsized gains in recent years.

Alphabet gained 1.1 percent the day after the Google parent surpassed Apple in market capitalisation for the first time since 2019, becoming the second-most valuable US company. The iPhone maker was down 0.5 percent.

"While AI is still ⁠hot, there are going to be winners and losers," said Art Hogan, chief market strategist at B Riley Wealth.

"It's become a 'show me' sector. Show me how you monetise this. Show me if there's going to be a return on the capex you're putting into your development."

Defence stocks gained after Trump said the 2027 US military budget should be US$1.5 trillion, much higher than the US$901 billion approved by Congress for 2026.

Lockheed Martin rose 4.3 percent, Northrop Grumman added 2.4 percent and Kratos Defense jumped 13.8 percent.

Some defence stocks fell in the prior session, after Trump threatened to block defence contractors from paying dividends or buying back shares until they speed up weapons production.

The S&P 500 ended flat at 6,921 points. The Nasdaq declined 0.4 percent to 23,480, while the Dow Jones Industrial Average rose ⁠0.6 percent to 49,266.

Traders were focused on Friday's crucial nonfarm payrolls report for December, which would be among the first reliable datasets after the longest US government shutdown in history.

Fitch raised its US growth outlook, estimating GDP expanded 2.1 percent in 2025 and forecasting 2.0 percent growth in 2026 after incorporating economic data delayed by last year's government shutdown. (Reuters)