S&P, Nasdaq tumble led by tech; Dow gains
Nasdaq slides >2%, S&P 500 falls >1%, Dow hits 3rd-straight record closing high
Staples lead S&P 500 sector gainers; Tech weakest group
Dollar, gold, bitcoin dip; crude rallies >2%
U.S. 10-Year Treasury yield edges down to ~4.16%
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S&P, NASDAQ TUMBLE LED BY TECH; DOW GAINS
The S&P 500 .SPX and the Nasdaq .IXIC ended Wednesday on a downbeat note, as the rotation away from mega-cap tech stocks persisted, spurring the decline in chip shares.
A retreat in the "Magnificent 7" group of momentum stocks, led by Nvidia Corp NVDA.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O, dragged the Nasdaq more than 2% lower, while the benchmark S&P 500 slid more than 1%.
The Dow Jones Industrial Average .DJI, meanwhile, posted its third-straight record closing high, led by gains in Johnson & Johnson JNJ.N and UnitedHealth Group UNH.N.
"Despite the tech slump, sentiment remains positive towards U.S. stocks amid confidence that the Federal Reserve will cut rates. It is just that the tech sector is no longer looking valuable at these still-high levels for many," wrote Fawad Razaqzada, market analyst, at City Index and FOREX.com, in emailed comments.
"As we have seen repeatedly in the past, corrections like the one we have seen this week in the tech sector have been bought fairly quickly. Don't be surprised if we witness another dip-buying into the sector once profit-taking pressure subsides."
On the economic front, housing starts and building permits came in better than expected, with strength in multiple-unit projects outweighing a decline in single-family homebuilding.
U.S. industrial output also gained, rising at double the expected rate in June.
Despite the firmer data, market expectations, according to the CME's FedWatch Tool, continue to suggest that the Federal Reserve is on track to start cutting interest rates in September.
(Gertrude Chavez-Dreyfuss)
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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
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HUMP DAY DATA ROUNDUP: HOUSING STARTS, MORTGAGES, INDUSTRIAL OUTPUT - CLICK HERE
S&P, NASDAQ DOWN AS CHIP, TECH STOCKS LEAD DECLINES - CLICK HERE
POWER STRUGGLE WITHIN THE NASDAQ COMPOSITE ABOUT TO COME TO A HEAD? - CLICK HERE
CURVE STEEPENERS COULD BE THE TRUMP TREASURY TRADE - CLICK HERE
CONSIDER OWNING OPTIONS BEFORE EARNINGS - BARCLAYS - CLICK HERE
TRUMP TARIFFS COULD WIPE OUT EUROPE'S 2025 EPS GROWTH, GS FINDS - CLICK HERE
BANK OF ENGLAND'S CRUEL SUMMER - CLICK HERE
DRUGS AND CHIPS DRIVE THE STOXX - CLICK HERE
LET THE CHIPS FALL WHERE THEY MAY - CLICK HERE
GOLD GLITTERS, INFLATION JITTERS - CLICK HERE
US markets closing snapshot https://tmsnrt.rs/4bTxtUB
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