The S&P 500 ended lower on Thursday, with Intel and other chip stocks retreating after a recent rally, while uncertainty surrounding US-Iran peace talks weighed on the broader market. US-listed shares of Arm Holdings tumbled on concerns about the company’s ability to secure enough supply for its new AI chip and overshadowed strong earnings forecasts. Intel and Advanced Micro Devices declined, giving back some of their gains earlier this week. The PHLX chip index fell, paring its gains so far this quarter to about 46%.

The United States and Iran were moving toward a temporary agreement to end their war, sources and officials said, adding that Tehran was reviewing a proposal that would end the fighting but leave the most contentious issues unresolved.

“You can have a string of days like this, and that doesn’t take away from the fact that this has been a rip-roaring quarter of a recovery, driven by fundamentals,” said Mike Dixon, head of portfolio management at Horizon Investments in Charlotte, ⁠North Carolina. Oil prices are at lows, trading around $100 a barrel. Nvidia and Microsoft both rose, underscoring investor confidence in Wall Street’s heavyweight AI companies.

The S&P 500 ended down 29.46 points, or 0.40%, at 7,335.66, while the Nasdaq Composite shed 32.75 points, or 0.15%, at 25,801.20, according to preliminary data. The Dow Jones Industrial Average fell 313.34 points, or 0.64%, to 49,597.25. An unrelenting rally in technology and AI stocks has helped push U.S. stocks to record highs in recent days as investors cheer signs of strong demand for artificial intelligence and a strong earnings season. S&P 500 companies are on track for their strongest profit growth in more than four years.

Upbeat economic readings in recent weeks have also helped ease concerns about the economy. Data showed that the number of Americans filing claims for unemployment benefits rose less than expected last week.

After a strong private payrolls report on Wednesday, investors awaited more comprehensive nonfarm payrolls data on Friday, showing jobs rose 62,000 in April after a rebound of 178,000 in March, a Reuters poll of economists said.

Traders continued to bet that the U.S. The Federal Reserve will keep interest rates steady through the end of the year due to a resilient labor market and elevated energy prices. Cleveland Fed President Beth Hammock said she expects the central bank to keep interest rates on hold well into the future as it navigates an environment of considerable uncertainty.

Datadog rose after the cybersecurity company raised its full-year earnings forecast. CrowdStrike and Palo Alto Networks also grew.

Whirlpool fell after the home-appliance maker missed first-quarter sales estimates and suspended its dividend.

Declining stocks are outnumbering the S&P 500 by a 1.7-to-one ratio.

The S&P 500 posted 18 new highs and 10 new lows; The Nasdaq recorded 126 new highs and 83 new lows.