Nasdaq 100 and S&P500: Valuation Fears Deepen After CEO Warnings Shake Tech Stocks

Information technology was the worst-performing S&P sector by midday, down 1.6%, as Big Tech gave back some of its recent gains. Nvidia dropped 2.3%, Alphabet lost 1.8%, and Microsoft slipped 0.7%. Palantir sank 7.5% despite raising guidance, with traders seemingly taking profits after a sharp run-up this year.

Investors are watching closely for earnings from Advanced Micro Devices and Super Micro Computer after the bell. Both are seen as near-term sentiment drivers for AI-related trades. Elsewhere in tech, Spotify and Shopify each reversed early gains to trade lower after earnings, falling 2.2% and 3.9%, respectively.

Which Sectors Are Offering Support?

Financials edged higher, up 0.45%, with some support from defensive groups such as healthcare (+0.27%) and consumer staples (+0.09%). Real estate and utilities hovered near flat lines.

Meanwhile, industrials (-1.1%), energy (-1.07%), and consumer discretionary (-1.42%) underperformed. Norwegian Cruise Line dropped 14% on weaker-than-expected revenue, pulling Royal Caribbean (-5%) and Carnival (-8%) lower. In contrast, Yum Brands gained 7% on strong Taco Bell demand, and Denny’s jumped 50% following a buyout deal.

Which Stocks Are Making Headlines?

Uber slipped 7.4% midday after missing Q3 EBITDA expectations, though revenue topped estimates. Sarepta Therapeutics plunged 34% on disappointing trial results, while Zoetis lost 12% after cutting full-year guidance.

Bright spots included Henry Schein, up nearly 10% after strong earnings and an upward revision to its outlook. Wingstop gained 14% on solid same-store sales, and Sanmina climbed 16% following an upbeat quarter. Upwork also moved higher, up 7%, on better-than-expected earnings.