Nasdaq 100 and S&P 500: Nvidia Drags Tech Stocks Lower as Inflation Fuels Fed Speculation
The Nasdaq Composite dropped 1.12%, weighed down by falling mega-cap tech stocks and disappointing earnings from key players in the sector. In contrast, the Dow Jones Industrial Average was off by 0.13% although it was supported by strength in healthcare and financial stocks that capitalized on positive economic data.
Small-cap stocks fared better, with the Russell 2000 climbing 0.7%. The broader market breadth was positive, as advancing issues outnumbered decliners by a 2.88-to-1 ratio on the NYSE and 1.7-to-1 on the Nasdaq.
Sector Highlights: Which Areas Outperformed?
Healthcare was the best-performing sector, rising 0.95% as investors sought stability in the face of macroeconomic uncertainty. Financials also posted solid gains of 0.37%, supported by upbeat third-quarter GDP data and a decline in weekly jobless claims, which signaled ongoing strength in the U.S. labor market.
On the flip side, technology suffered the steepest losses, falling 1.91%. Rising yields on shorter-term Treasury bonds weighed heavily on growth-oriented tech stocks. Dell and HP were among the biggest losers, plunging 10.5% and 10.1%, respectively, following weak earnings guidance. Communication Services also struggled, with the sector declining 0.42%.
Utilities and Real Estate sectors rose 0.43% and 0.97%, respectively, as traders sought yield-focused assets. Energy posted modest gains of 0.36%, underpinned by higher oil prices.