2024-07-25 23:09:20
Today’s meeting also closed with a drop S&P 500 and Nasdaq, extending yesterday’s losses as investors continued to abandon leading tech stocks. The fresh sell-off in tech stocks overshadowed economic data that boosted confidence that the Fed will finally pull off a soft landing.
About 300 stocks in the S&P 500 moved higher – but ultimately the index closed down 0.5% at 5,399.22. While economy-sensitive stocks such as energy, industrials and financial services rallied, the stalwart technology sector came under renewed pressure. The Nasdaq fell 0.9% to 17,181.72.
However, the Dow Jones managed to buck the decline, rising 81.20 points, or 0.2%, to close at 39,935.07. At the start of the session, the blue chip index was up more than 500 basis points, or 1.5%.
The Russell 2000 for small-cap stocks rose 1.26% as investors continued to shift to small-cap stocks.
Investors liquidated tech stocks for a second session. Nvidia posted losses of 2%, while Advanced Micro Devices fell more than 4%. The VanEck Semiconductor Index lost 2%, while shares of large-cap stocks such as Meta Platforms and Microsoft fell 2%. Alphabet posted losses of more than 3%.
Investors found some support in second-quarter US GDP data, which ran at a 2.8% pace, more than expected from 1.4% in the first quarter.
Investors see the recent decline as a sign of an overvalued and overbought market that is starting to move away from large-cap technology stocks and into smaller-cap stocks and more cyclical sectors.
Ford Motor stock sank 18% in its worst session since 2008 after second-quarter earnings fell short of expectations.