US benchmark equity indexes closed lower Thursday as traders analyzed the latest batch of economic data and corporate earnings.

The Nasdaq Composite fell 0.9% to 19,338.3, while the Dow Jones Industrial Average and the S&P 500 lost 0.2% each to 43,153.1 and 5,937.3, respectively. Technology saw the steepest decline among sectors, while utilities led the gainers.

In economic news, US retail sales rose at a slower-than-projected pace last month, weighed down by a decline in the volatile building materials stores component, US Census Bureau data showed.

"It has been a very strong performance from the consumer and retail sales since the (Federal Reserve) started cutting interest rates in September," BMO said. "Strong fourth-quarter retail sales growth is another data point the Fed will use to justify holding the Fed funds target rate steady on January 29th as it awaits more clarity on tariffs and the future path of inflation."

US homebuilder confidence unexpectedly climbed in January even as expectations cooled due to rising mortgage rates, according to National Association of Home Builders and Wells Fargo data.

Manufacturing activity in the US Mid-Atlantic region reached a multiyear high this month as orders swung positive and shipments jumped, according to a Philadelphia Fed survey.

Weekly applications for unemployment insurance in the US increased more than projected, while continuing claims dropped, the Department of Labor reported.

The US 10-year yield declined 3.8 basis points to 4.62% Thursday, while the two-year rate fell 2.3 basis points to 4.24%.

In company news, UnitedHealth Group (UNH) shares slumped 6%, the worst performer on the S&P 500 and the Dow. The health insurer's Q4 results increased on an annual basis, but revenue fell short of market expectations.

Bank of America (BAC) posted stronger-than-expected growth in Q4 results as investment banking fees jumped and loans picked up. The lender said that net interest income will accelerate in H2 2025 from H1. Its shares fell 1%.

Morgan Stanley (MS) logged higher-than-expected Q4 results, buoyed by its investment banking business, which reflected increased deal activity and initial public offerings. The lender's shares jumped 4%.

DexCom (DXCM) was the best performer on the S&P 500 and the Nasdaq, up 5.5%, as Baird upgraded the stock to outperform from neutral and adjusted its price target to $104 from $86.

West Texas Intermediate crude oil dropped 1.7% to $78.70 a barrel.

The Fed could reduce its benchmark lending rate multiple times in 2025 if inflation cools as expected, CNBC reported, citing an interview with Fed Governor Christopher Waller.

"As long as the data comes in good on inflation or continues on that path, then I can certainly see rate cuts happening sooner than maybe the markets are pricing in," Waller reportedly said.

Gold rose 1.1% to $2,747 per troy ounce, while silver added 0.2% to $31.60 per ounce.