Other chip stocks such as Advanced Micro Devices lost 1% and a broader chip index fell 1.5% a day after Oracle unveiled a weak forecast.Shares of the cloud company fell 2.3% after posting their biggest daily decline since January in the previous session.
“Given that ‘Big Tech’ has led the rally since October 2022, there is a danger it becomes the catalyst for a broad sell-off,” said David Morrison, senior market analyst at Trade Nation.
At 9:47 a.m. ET, the Dow Jones Industrial Average rose 154.56 points, or 0.31%, to 48,856.46, the S&P 500 lost 12.58 points, or 0.18%, to 6,888.92 and the Nasdaq Composite lost 119.55 points, or 0.51%, to 23,478.83.
Nine of the 11 S&P 500 sectors moved higher, although heavyweight technology stocks lost 1%, sending the overall index lower. Despite the bleak outlook, the S&P 500, the Dow and the Russell 2000 all closed at record highs on Thursday and were on track for weekly gains after the Fed cut borrowing costs and gave a less aggressive outlook than investors had feared.
The biggest gains were in the blue-chip and small-cap indexes, underscoring a shift toward value stocks away from the mega-cap names. The Russell 2000 has outpaced the S&P 500 for much of this quarter, as investors moved away from AI-powered growth names and into high-value sectors like healthcare.
“There is plenty of money on the sidelines, consumers are not as gloomy as many say, and the Fed is easing rather than tightening. Plus, many sectors and stocks are well rested and ready to pivot,” said Robert Edwards, Chief Investment Officer of Edwards Asset Management.
Meanwhile, policymakers who voted against the Fed’s rate cut this week said they worry that inflation remains too high to justify lower borrowing costs, especially given the lack of recent official data on the pace of price increases.
Still, traders are pricing in a total of 50 basis points of rate cuts by the end of 2026 – more than the Fed signaled on Wednesday.
Nvidia rose 0.3% in part after a report said the company is evaluating an increase in production of H200 chips to meet robust demand from China.
Lululemon Athletica rose 12% after the apparel maker raised its annual profit forecast and said CEO Calvin McDonald would leave the company.
In other individual stock moves, U.S.-listed shares of cannabis companies rose after a report said President Donald Trump wanted to ease restrictions on marijuana through a planned order. Canopy Growth added 23% and Tilray Brands climbed 30%.
Advancing issues outpaced declining issues by a 1.55-to-1 ratio on the NYSE and by a 1.1-to-1 ratio on the Nasdaq.
The S&P 500 posted 24 new 52-week highs and one new low, while the Nasdaq Composite posted 66 new highs and 37 new lows.
#Nasdaq #trade #Dow #Jones #rises #Broadcom #increases #soap #stakes