CMG - Rotation of Tech Continues NASDAQ Again Suffers
The NASDAQ Composite dropped for a second day Thursday as Wall Street continued its rotation out of technology stocks.
The Dow Jones Industrials recovered 175.76 points to 40,029.63.
The S&P 500 index subtracted 2.99 points to 5,424.14.
The tech-heavy NASDAQ lost another 86.89 points to 17,253.91.
Ford Motor shares tumbled 16% after the company's second-quarter earnings came in much lower than analysts expected. Chipotle slipped 3% despite topping earnings and revenue expectations, while ServiceNow popped 11% on stronger-than-expected earnings.
Investors also assessed a second-quarter GDP report that showed the economy grow 2.8%, and much more than expected. Economists surveyed by Dow Jones had anticipated growth of 2.1%.
Wednesday's trading session saw intense declines for the S&P 500 and the NASDAQ, driven by disappointing quarterly reports from Alphabet and Tesla. Both the broad-market index and the tech-heavy benchmark posted their worst session since 2022, while the Dow shed roughly 504 points.
Investors have come to view the recent declines as a sign of an overdue correction in an overbought market, which is now seeing a rotation away from megacap tech into small-cap stocks and more cyclical areas.
Prices for the 10-year Treasury popped, lowering yields to 4.21% from Wednesday's 4.28%. Treasury prices and yields move in opposite directions.
Oil prices moved downward 40 cents at $77.19 U.S. a barrel.
Gold prices scaled back $50.60 to $2,398.70