S&P 500 slides with tech shares under pressure
The S&P 500 fell on Tuesday, pressured by declines in tech, following strong gains in the previous session.
The broad market index shed 0.1%, while the Nasdaq Composite lost 0.5%. The Dow Jones Industrial Average outperformed, rising 91 points, or 0.2%.
CoreWeave shares slid 9% after the company’s guidance disappointed investors, hurting the artificial intelligence trade. Nvidia shares also pulled back nearly 2% after SoftBank sold its entire stake in the chipmaker for more than $5 billion. The AI trade has been under pressure recently amid growing valuation concerns.
The Technology Select Sector SPDR fund (XLK), which tracks the S&P 500 tech sector, fell 0.6%.
Reinforcing the downbeat sentiment Tuesday, a new report from ADP revealed that for the four weeks ending Oct. 25, private sector job creation was down more than 11,000 on average per week. The data stands in contrast to the October gains that the firm reported last week and signals some weakness in the labor market.
Major U.S. indexes rallied across the board on Monday on hopes that the record-setting U.S. government shutdown could be nearing an end. The Nasdaq Composite had its best day since May 27, with a more than 2% gain, as investors bought the dip in artificial intelligence names after last week’s sell-off. The S&P 500 gained 1.5%, and the 30-stock Dow advanced almost 400 points, or nearly 1%.
The Senate on Monday evening passed a bill to end the shutdown, sending it to the House. The negotiated deal does not include Democrats’ demand that any funding bill must include an extension of Affordable Care Act subsidies, and instead calls for a vote on the tax credits in December.
Investors during the previous session piled into several risk-on names, which had led the broader market lower last week as concerns grew about the strength of the AI trade and the health of the U.S. economy.
Source : Cnbc.com
