S&P 500 falls as rate-cut optimism fizzles |
An initial burst of optimism over a soft US jobs report making a Federal Reserve rate cut this month a foregone conclusion didn’t last long.
The S&P 500 gave up early gains to close down 0.3%. The Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed with a 0.5% rise, though both indexes finished well off their highs of the day. Real estate was the best-performing S&P sector ETF while financials and energy each fell more than 1%.
The day’s bright spots were led by Broadcom, which rose 9.4% after the chipmaker beat top- and bottom-line estimates for Q3 and said its 2026 AI revenue outlook will “improve significantly” with OpenAI reportedly booked as a new customer. At the same time, Nvidia and No. 3 US chip player Advanced Micro Devices were down 2.7% and 6.6%, respectively, as their rival’s gain was their pain. Elsewhere...
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- Lululemon stretched 18.6% lower after the athleisure giant topped Q2 estimates but massively slashed its full-year outlook.
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Kenvue sank 9.2% following a WSJ report that Health and Human Services Secretary Robert F. Kennedy Jr. will tie autism to prenatal use of Tylenol.
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Palantir shares were slightly bruised by the momentum-driven sell-off, falling about 2%, with its slide pushing the price well below the 50-day moving average.
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Robinhood and Interactive Brokers tumbled amid a broad reversal in momentum stocks. (Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)
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Tesla jumped more than 3% after the company proposed an unprecedented roughly $1 trillion pay package for CEO Elon Musk, according to proxy filings.
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Lucid surged nearly 14% following six days of losses after headlines misidentified Cantor Fitzgerald’s lower split-adjusted price target as a good thing.
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Salesforce shares rebounded 2.8%, after slipping Thursday, following the tech company’s better-than-expected fiscal Q2 earnings results.
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— Luke Kawa, Markets Editor & Nia Warfield, Markets Writer |
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AI isn’t a magic word that turns hype into profit. Read more. |
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