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S&P 500 falls even with most stocks rising as traders dump AI names

The S&P 500 fell 0.6% despite having far more gainers than losers.

8/19/25 3:31PM

The nascent pullback across high-flying, AI-linked names picked up steam on Tuesday, sending major indexes down even as most stocks went up.

The S&P 500 fell 0.6% despite having far more gainers than losers, the Nasdaq 100 tumbled 1.4%, and the Russell 2000 gave back 0.8%.

The iShares MSCI USA Momentum Factor ETF had its worst day since the opening session of Q3, with Palantir leading S&P decliners. The AI darling fell 9.3% to match its longest losing streak since April 2024.

As you’d expect given the tape, with indexes down despite most stocks rising, the pain at the S&P 500 sector ETF level was concentrated in tech — communication services and consumer discretionary were the only other two sectors to fall on Tuesday. Morgan Stanley’s basket of AI tech beneficiaries suffered its biggest one-day drop since April 10, falling 4.1%.

Gains on the day were led by Intel, which rose 6.9% after the company reported that Japanese tech giant SoftBank Group was buying a $2 billion stake in the US chipmaker. Elsewhere...

Home Depot shares were up 3.2% after the home improvement retailer turned in weaker-than-expected Q2 results but doubled down on its full-year outlook.

Best Buy shares were up 3.3% after the electronics retailer announced plans to launch a new third-party marketplace, expanding its online assortment beyond tech.

Palo Alto Networks was a rare sight on Tuesday: an AI-linked name that performed well. Shares jumped 3% after posting top- and bottom-line beats in the fourth quarter along with a bright outlook for its current fiscal year.

Meta shares were down about 2% as the tech giant announced internally that it’s splitting its AI division. The decisions reportedly include moving employees, AI executive exits, and eliminating some roles.

Fabrinet shares sank 12.8% after the maker of optical communication devices said that sales in its data communication business are expected to fall in the current quarter.

Viking Therapeutics fell 42% after the company reported trial results for its weight-loss pill Tuesday morning that disappointed investors.

Luke Kawa, Tasha Matsumoto

2/20/26

Stocks rise as the Supreme Court strikes down Trump’s tariffs

In response, Trump said he was imposing a 10% global tariff effective immediately under Section 122 of the 1974 Trade Act.

Chicago Bulls Mascot Benny the Bull dunks the ball during the halftime show of the Missouri Valley Conference college basketball game between the Loyola-Chicago Ramblers and the Illinois State Redbirds on February 2, 2019.

Max Knoblauch2/20/26

Lucid cuts 12% of its US workforce in a profitability push

EV maker Lucid announced on Friday it is laying off 12% of its US workforce as part of its efforts to improve profitability.

This is Lucid’s third round of layoffs since March 2023. At the end of 2024, the company said it had 6,800 employees globally.

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

Lucid Motors slashes 12% of its workforce as it seeks profitability | TechCrunch

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

Max Knoblauch2/20/26

The Supreme Court’s tariff ruling isn’t sweeping relief for automakers, but it isn’t nothing either

The Supreme Court on Friday struck down a significant chunk of President Trump’s tariffs, but the decision isn’t a cause for automakers to fully exhale.

Friday’s ruling relates to tariffs imposed under the International Emergency Economic Powers Act and not Section 232. The 25% tariffs on automobiles and auto parts were imposed under Section 232, so those tariffs remain in place.

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Luke Kawa

2/20/26

Supreme Court strikes down Trump’s reciprocal tariffs; Trump responds with 10% global tariff

The president said he has “great alternatives” and can charge even more than he was charging.

President Trump Holds "Make America Wealthy Again Event" In White House Rose Garden

Luke Kawa2/20/26

Nvidia nears $30 billion investment in OpenAI’s funding round, the FT reports

Nvidia is close to investing $30 billion in OpenAI as part of its long-discussed funding round, per the Financial Times.

Bloomberg had previously reported that Nvidia would be investing $20 billion in this round.

The FT says that this investment will effectively be replacing a bigger planned pact between the two companies. The Wall Street Journal had originally reported in late January that Nvidia’s investment of up to $100 billion in OpenAI, which was announced in September, had “stalled” amid private criticisms of the ChatGPT maker by CEO Jensen Huang.

As Microsoft, SoftBank, or Oracle could tell you, being viewed as overly exposed to OpenAI has not been a boon for stocks in recent months.