Dow Jones drops 460 points, retreats from record high

US stocks closed lower on Jan. 7 after touching a new record high during the session, as momentum fueled by investor optimism over the artificial intelligence boom and prospects of monetary easing began to fade.

The Dow Jones Industrial Average fell 0.95%, or 466 points, to 48,966 points, after hitting an all-time high at 49,621 points.

The broader S&P 500 index lost 0.35%, or 23 points, to 6,920 points after touching a record high of 6,965 points, while the Nasdaq Composite rose 0.15%, or 37 points, to 23,584.

Shares of the energy and banking sectors fell by around 1% during the session, after leading market gains in the first few sessions of the year, while shares of major US oil companies also declined.

In Europe, the Stoxx Europe 600 remained unchanged at 604.99 points, following a series of record closes at the start of the new year.

Germany’s DAX gained 0.92% to 25,122 points, closing above the 25,000-point level for the first time ever.

France’s CAC 40 remained flat at 8,233 points, while London’s FTSE 100 shed 0.75% to 10,048 points.

In Japan, the Nikkei 225 dropped by more than 1% to 51,961 points, while the broader Topix index retreated 0.75% to 3,511 points.

In oil markets, Brent crude futures for March delivery slumped 1.2%, or $0.74, to $59.96 a barrel.

US WTI crude futures for February delivery plunged 2%, or $1.14, to $55.99 a barrel.

Gold futures for February delivery decreased 0.75%, or $33.60, to settle at $4,462 per ounce.