Most US stocks rise, but megacap tech drags major indexes down
The S&P 500 inched lower on Thursday, the Nasdaq 100 had an ugly close to end down 0.7% at its low of the day, and the Russell 2000 eked out a small advance.
Today was the first time the S&P 500’s advance-decline line was above 250, but the benchmark index suffered a drop of 0.2% since July 11, which marked the start of a meaningful drawdown for megacap tech stocks.
Most S&P 500 sectors moved higher, but tech, communication services, and consumer discretionary — the sectors home to the Magnificent 7 cohort — all retreated. Every member of that group fell.
Apple had an awful day amid reports that it’s losing market share in China, its worst underperformance of the broad market since March. Tesla also stumbled, giving back a chunk of yesterday’s big gains.
UnitedHealth was the worst performer in the S&P 500 after posting disappointing earnings that saw net income drop significantly year on year.
Southwest Airlines slumped on the heels of a lawsuit from the Department of Transportation alleging that it “chronically delayed” flights.
On the bright side, TSMC jumped after posting robust earnings and a bright outlook for the year ahead.
Rivian jumped following a report that the electric-vehicle maker is set to receive billions in financing from the Biden administration. Uber also had a strong showing following some positive commentary from Wall Street analysts.
