BHC:CC - S&P Burdened by Tech Stocks
The S&P 500 fell on Thursday as investors digested a batch of Big Tech earnings, while a meeting between President Donald Trump and Chinese President Xi Jinping concluded.
The Dow Jones Industrials index surged 215.54 points Thursday to 47,847.54
The broader dipped 21.91 points to 6,868.68.
The NASDAQ lost 199.59 points to 23,758.89.
Megacap tech giants Alphabet, Meta and Microsoft each reported quarterly results after market close Wednesday. While Alphabet shares popped about 5% on the back of strong results, shares of Meta backtracked 11% and Microsoft tumbled 3%. Investors grew worried about the increased spending outlooks for both Meta and Microsoft.
The drop in Meta and Microsoft, as well as artificial intelligence chip giant Nvidia, marked a rotation out of technology stocks in the session. While those were lower, bank stocks such as JPMorgan and Bank of America saw gains, as did health-care stocks on the heels of Eli Lilly’s stronger-than-expected quarterly results and guidance raise. Shares of Eli Lilly were last up 4%.
Along with Nvidia, other chip stocks like Broadcom and AMD were under pressure Thursday.
Prices for the 10-year Treasury gained ground, lowering yields back to Wednesday’s 4.08%. Treasury prices and yields move in opposite directions.
Oil prices nicked up 16 cents to $60.64 U.S. a barrel.
Gold prices recovered nine dollars to $4,009.70 U.S. an ounce.