The Nasdaq Composite and S&P 500 experienced a significant decline on Thursday, driven by a sell-off in technology stocks. Concurrently, Treasury yields fell as investors gravitated toward the security of government bonds. The tech-focused Nasdaq and benchmark S&P 500 concluded the trading session down by 2.6% and 1.2%, respectively. The blue-chip Dow Jones Industrial Average experienced a positive shift in the final minutes of trading, concluding with a marginal increase. Yesterday, the major U.S. indexes experienced an upward trajectory, with the S&P 500 marking its third consecutive session of gains, primarily driven by significant advancements in technology stocks. The 10-year Treasury yield declined to approximately 4.97% in late-afternoon trading, a decrease of 16 basis points from Wednesday’s close, as investors sought the relative safety of government bonds. Chip and other AI-related stocks experienced a sell-off on Thursday.
Roundhill’s Memory ETF dropped 7%, influenced by declines in Micron Technology, Sandisk, Seagate Technology, and Western Digital, the latter of which is scheduled to report results after markets close today. The broader iShares Semiconductor ETF experienced a decline of approximately 6.5%, influenced by the performance of Advanced Micro Devices, Intel, and Nvidia. The Roundhill “MAGS” ETF, which tracks the Magnificent Seven mega-cap tech stocks, concluded the trading session with a decline exceeding 3%, primarily impacted by a 7% retracement in Meta Platforms. Tesla, which like Meta reported earnings after the bell Wednesday, declined 3%.SpaceX closed down 9% a day after the space, AI, and social media company surged 8% following CEO Elon Musk’s announcement that the board and Tesla’s formed committees to discuss a merger. Crypto-tied stocks, including Strategy, Mara Holdings, Coinbase Global, and Robinhood Markets, experienced a significant decline.
The price of bitcoin experienced a decline to approximately $81,300 during late-afternoon trading, down from overnight highs near $84,800. Moderna was the worst-performing stock in the S&P 500, with shares dropping 18%, following an apparent leak of cancer-vaccine data. In the aftermath of earnings announcements, shares of Spotify Technology experienced an increase of 11%, Lockheed Martin saw a rise of 7%, Procter & Gamble advanced by 5.5%, and Comcast recorded a gain of 3.5%. Union Pacific rose 3.5%, while Norfolk Southern advanced 3%. Honeywell International gained almost 2%, and International Business Machines ticked higher. Lam Research was among the worst-performing stocks in the S&P 500 and Nasdaq 100, logging a 12% pullback.
Oil prices increased following reports of potential military strikes by the U.S. and Israel against Iran, alongside assaults by Iran-backed Houthi rebels on Saudi Arabia. U.S. benchmark West Texas Intermediate crude futures increased by 2.2%, reaching $99.30 per barrel at 4 p.m. Brent crude futures, the international benchmark, experienced a 4% increase, reaching $113.10, marking their highest level since early May. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, experienced a decline of 0.2%, settling at 101.63. Gold futures declined by 2.6%, settling at $4,040 per ounce.
