Stocks edge lower as semi companies tumble
The S&P 500 finished Wednesday down 0.3%. The Nasdaq 100 retreated 0.8%, while the Russell 2000 lost 0.2%.
Among megacaps, Alphabet gained the most following a blockbuster earnings report, up 2.8%, leading the Magnificent 7. Meta retreated 0.3%, while Microsoft advanced a slight 0.1% — both reported earnings after the bell.
Sector performance was mixed. The technology sector came in last among all S&P 500 sectors, thanks to Super Micro Computer and Qorvo. Super Micro, once an AI darling, lost a whopping 32.7% after its auditor resigned. The stock has given up most of its gains so far this year. Qorvo, a chipmaker for smartphones, lost 27.3% after issuing a weak guidance for the next quarter as its customers shifted toward cheaper products.
In other corporate news, Eli Lilly tanked 6.3% after it told investors that revenues from its popular weight-loss drugs were not as high as Wall Street expected. Wingstop plunged 21.4% as earnings fell short of estimates. Brinker climbed 7.5%, as consumers — and presumably kids from TikTok — feasted at Chili’s. Chipotle extended its loss of 7.9% from Tuesday’s after-hours trading.
Lastly, with the election nearing,Trump Media & Technology Group fell more than 20% after three consecutive gains.
Treasury yields went up. Policy-sensitive 2-year yields rose six basis points to 4.17%, while 10-year yields neared 4.3%. The latest GDP report showed that the US economy expanded at a 2.8% annual rate in the third quarter, driven by resilient consumer spending.
