US stocks sink as markets consolidate after robust rebound
US stocks slumped for a second straight day as the momentum trade that has powered the market’s comeback sprung a leak. The S&P 500 fell 0.8%, the Nasdaq 100 gave back 0.9%, and the Russell 2000 declined 1.1%.
It’s some consolidation for the stock market after a nine-day streak of gains that erased all the losses since the Rose Garden tariff announcements. While the outlook for cross-border commerce is still shaping up to be much worse than feared, there’s still significant uncertainty and volatility surrounding levies on US imports going forward.
Healthcare was the worst-performing S&P 500 sector ETF on the day, with biotech giants like Moderna, Eli Lilly, Merck, and AbbVie dragging the group lower. On the flip side: utilities was the best-performing sector as Constellation Energy pulled a major reversal, closing up nearly 12% (and leading S&P 500 gains) after execs highlighted strong AI data center demand.
Sticking with earnings…
Palantir shares sank 12% after the software analytics company’s solid Q1 results failed to wow investors. Despite the sell-off, the stock is still up nearly 40% this month.
Hims & Hers stock soared almost 19% as investors continued to digest its Q1 earnings results, which topped estimates but pointed to a slowdown in the company’s core business.
Elsewhere… Sweetgreen shares fell 7% after JPMorgan downgraded the stock and slashed its price target as higher-income customers cut back on pricey salads.
DoorDash also sank nearly 8% after the food delivery giant said it had struck a deal to buy hospitality tech company SevenRooms for $1.2 billion in cash.
