U.S. stocks erased record-setting gains on Thursday, turning lower in a late-session shift as cheer over the European Central Bank's unexpected rate cut faded, a day ahead of the monthly payrolls report.
"The ECB is behind us, and what's the next catalyst? The jobs report tomorrow has pulled our enthusiasm," said Art Hogan, chief market strategist at Wunderlich Securities.
The ECB lowered its benchmark interest rate to 0.05 percent, and cut its deposit facility to minus 0.2 percent.
The central bank's "non-conventional methods of easing credit will hopefully boost inflation and reverse the deflationary scenario," said Peter Cardillo, chief market economist at Rockwell Global Capital.
"You can see markets remain somewhat cautious; we're seeing signs of fatigue setting in," said Cardillo, who added the market is in an overbought condition and that "some sort of a pullback is looming."
"We still have the Dow and S&P 500 within shouting distance of all-time highs," noted Hogan.