US stocks hit the skids on downbeat economic data, Moderna plummets 21%
The S&P 500 slumped 1.4% as a spate of bad data raised fears that the Federal Reserve might be too late in cutting interest rates to support the economy. The Nasdaq 100 tumbled 2.4% and the Russell 2000 gave back 3%. It was the most volatile day of the year for US stocks, put options traded hit their highest level since March 2023, while the 10-year Treasury yield broke below 4% for the first time since February.
Tech was the worst-performing S&P sector ETF with a 3.7% retreat; energy, consumer discretionary, industrials, and financials were also slammed. The VanEck Semiconductor ETF sank 6.5%.
The classic interest rate sensitive, defensive sectors — utilities, real estate, and health care — all gained more than 1%, while consumer staples also had a solid advance. It’s the first time at least 3 S&P sector ETFs gained 1% or more on a day when the stock market fell 1% or more since January 2001.
Meta bucked the carnage in the tech and tech-adjacent space thanks to strong earnings released after the close on Wednesday, gaining 4.8%.
Moderna, conversely, was the worst performer in the S&P 500, off a whopping 21% after cutting its full-year revenue forecast as it tries to fill the hole left by its declining Covid vaccine sales.
