US stocks tumble as momentum trades unwind, earnings disappoint
The S&P 500, Nasdaq 100, and Russell 2000 all ended Wednesday in the red.
Stocks slumped on Wednesday as the downturn in traders’ favorite speculative pockets of the market that started late last week began to infect the blue-chip stocks that have been big winners for major indexes.
Major indexes finished well off their lows, with the S&P 500 off 0.5%, the Nasdaq 100 about 1% lower, and the Russell 2000 underperforming with a drop of nearly 1.5%.
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Stocks that moved higher:
Intuitive Surgical soared after strong earnings reported after the bell on Tuesday sparked a wave of analyst upgrades.
Warner Bros. Discovery climbed amid reports it has rejected takeover offers around $24 per share but is still open to a sale.
Google rose after a report of a new deal with Anthropic for AI compute “valued in the high tens of billions.”
Stocks that moved lower
Beyond Meat had such a volatile day that trading was halted as traders finally hit the sell button on the latest meme stock. Earlier, it saw a premarket session with higher volume than any other stock in America.
Hot Wheels sales held up better than Barbie for Mattel, but the toymaker’s stock still fell after posting Q3 results that missed analysts’ estimates.
Carvana plunged as another subprime lender’s bankruptcy filing weighed on sentiment around the used car retailer and its exposure to subprime loans.
AST SpaceMobile dropped after announcing new share issuance and plans to raise more debt.
Quantum stocks including Rigetti Computing and D-Wave Quantum plunged as retail traders hit the sell button.
Nuclear stocks suffered the same fate, as Oklo, Nano Nuclear, and Centrus Energy took a beating amid a broad unwind of momentum trades.
