Tech tumble drags down stocks
All stocks in the Mag 7 fell as investors rotated into defensive names.
The S&P 500 and Nasdaq 100 fell as all of the stocks in the Magnificent 7 traded lower. The Russell 2000 outperformed, rising 0.7%. Energy was the best-performing sector as tensions in Iran sent crude futures higher for much of the day before dropping sharply in the late afternoon to close lower. Utilities, consumer staples, and healthcare also rose as investors rotated into defensive safe havens. Bitcoin continued to rally following yesterday’s better-than-expected CPI report.
Earnings season so far has been a mixed bag as Citigroup reported better-than-expected earnings and revenue, and Q4 revenues and net interest income for Wells Fargo came in shy of Wall Street’s estimates, with both stocks trading lower today.
Stocks that moved higher:
Clover Health surged after announcing 53% growth in Medicare Advantage memberships and that it’s expecting full-year positive net income in 2026.
Viking Therapeutics soared as its CEO said many parties are “circling the space” for acquisition.
Intel rose again, riding a wave of support from President Trump and speculation about the prospect of Apple becoming a key customer for Intel’s ailing contract chip-manufacturing business.
Alibaba gained ahead in anticipation of positive AI updates at Thursday’s Qwen product event in China.
Stocks that moved lower:
Nvidia dropped as Reuters reported that China has ordered “basically a ban” of H200 imports.
Broadcom and Fortinet sank after a report that Beijing has told Chinese firms to stop using cybersecurity software made by certain US and Israeli firms.
Tariff-sensitive stocks Restoration Hardware and Crocs stumbled after the Supreme Court declined to deliver a tariff ruling on Wednesday, which means a ruling in the case won’t come until next week at the earliest.
Netflix dipped, as European Commission regulators are reportedly deeply concerned about Netflix’s market concentration in the deal with Warner Bros. Discovery.
Rivian sold off following a UBS downgrade as analysts warned its AI stock boost may have peaked.
