S&P 500 falls as rate cut optimism fizzles
The S&P 500 gave up early gains to close down 0.3% while the Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed, rising 0.5%.
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...
Lululemon stretched 18.6% lower after the athleisure giant topped Q2 estimates but massively slashed its full-year outlook.
Kenvue sank 9.2% following a Wall Street Journal report that Health and Human Services Secretary Robert F. Kennedy Jr. will likely tie autism to prenatal use of Tylenol.
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.
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.)
Tesla jumped more than 3% after the company proposed an unprecedented roughly $1 trillion pay package for CEO Elon Musk, proxy filings show.
Lucid surged nearly 14% following six days of losses after headlines misidentified Cantor Fitzgerald’s lower split-adjusted price target as a good thing.
Salesforce shares rebounded 2.8% after slipping Thursday following the tech company’s better-than-expected fiscal Q2 earnings results.
