Tech, Blue Chip Stocks Drop; Small Caps, Real Estate Rebound As Yields Ease; Solar Industry Shines: What's Driving Markets Thursday?

Zinger Key Points
  • Major indices fell Thursday: S&P 500 (-0.2%), Nasdaq 100 (-0.6%), Dow Jones (-0.7%).
  • Investors favored lagging sectors like small caps, real estate, and solar stocks.

Wall Street experienced another decline on Thursday, with major large-cap indices affected by a downturn in the tech and communication services sectors.

Investors shifted their focus to market areas that have underperformed compared to tech over the past year, such as small caps, real estate and solar stocks.

In economic news, the second estimate of first-quarter GDP growth was revised down to 1.3% from the initial 1.6% estimate, driven by slower consumer spending growth. Inflation also saw a slight decrease.

New York Fed President John Williams stated there is no immediate need to adjust monetary policy and expects inflation to continue its decline, reaching the 2% target by 2025.

The S&P 500, Nasdaq 100, and Dow Jones Industrial Average fell by 0.2%, 0.6% and 0.7%, respectively. In contrast, the iShares Russell 2000 ETF IWM increased by 1.2%.

Treasury yields decreased by approximately 5-6 basis points across the curve after several days of sharp increases. The iShares 20+ Year Treasury Bond ETF TLT rebounded by 0.9%.

In the commodities market, oil dropped 1.6% despite a significant decline in U.S. crude inventories, which fell by 4.16 million barrels in the week ending May 24, surpassing the predicted 1.95 million barrel decline, according to the EIA Petroleum Status Report.

Gold, tracked by the SPDR Gold Trust GLD, rose 0.4%, and Bitcoin BTC/USD surged 1.5%.

Thursday’s Performance In Major U.S. Indices, ETFs

Major IndicesPrice1-day %chg
Russell 20002,063.681.3%
S&P 5005,257.77-0.2%
Nasdaq 10018,639.71-0.5%
Dow Jones38,205.02-0.6%
Updated at 12:57 p.m.

According to Benzinga Pro Data

  • The SPDR S&P 500 ETF Trust SPY was 0.3% lower to $524.63
  • The SPDR Dow Jones Industrial Average DIA fell 0.6% to $382.16
  • The tech-heavy Invesco QQQ Trust (ARCA: QQQ) down 0.47% to $454.36
  • Sector-wise, the Real Estate  Select Sector SPDR Fund XLRE outperformed, up by 1.3%, while the Technology Select Sector SPDR Fund XLK lagged, down 1.5%.
  • Industry-wise, solar stocks, as tracked by the Invesco Solar ETF TAN, rallied 2.8%.

Thursday’s Stock Movers

  • Salesforce Inc. CRM plummeted 20%, eyeing the sharpest drop in nearly 20 years, after missing quarterly revenue and issuing a lower-than-expected guidance.
  • HP Inc. HPQ rose 19% amid stronger-than-expected quarterly results, eyeing the top-performing session since Nov. 18, 1999.
  • Other companies reacting to earnings were Kohl Corp. KSS, down 23%; Dollar General Corp. DG, down 5.9%; Best Buy Co. Inc BBY up 12.6%, Hormel Foods Inc. HRL down 8.5%, Burlington Stores Inc. BURL down 19%; Birkenstock Holding plc BIRK up 11%; Agilent Technologies Inc. A, down 8%; Pure Storage Inc. PSTG, up 1.8%; Okta Inc. OKTA, down 5.9%; Nutanix Inc. NTNX, down 22%; Ui Path Inc. PATH, down 34% and Credo Technology Group Holding Ltd. CRDO, up 21%.
  • Large-cap companies slated to report earnings after the close include Costco Corp. COST, Dell Technologies Inc. DELL, Marvell Technology Inc. MRVL, Veeva Systems Inc. VEEV, NetApp Inc. NTAP, Zscaler Inc. ZS, MongoDB Inc. MDB, Ulta Beauty Inc. ULTA, The Cooper Companies Inc. COO, SentinelOne Inc. S, Gap Inc. GPS and HashiCorp Inc. HCP.

Read Now: Is Q1 GDP Data Easing Pressure On Fed To Cut Interest Rates? 5 Economists Weigh In

Photo: Shutterstock

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