As investors tried to make sense of the anticipated trajectory of megacaps, Thursday’s volatile session finished with the S&P 500 and Nasdaq Composite down a little bit. Neither index was able to recover the ground lost in Wednesday’s tech-triggered sell-off.
In response to stronger-than-expected news on the US gross domestic product, the Dow Jones Industrial Average managed to hold onto its early gains and close higher.
To offset some of Wednesday’s losses, small-cap stocks also rallied as investors looked for bargains outside of megacaps. The Russell 2000 surged 1.3%.
Meta Platforms was among several megacap companies that fell later after recovering from a shaky start to trade higher in the middle of the afternoon. Microsoft and Nvidia both ended the day 1.7% to 2.4% lower than where they started.
Shares of Alphabet declined for a second day in a row, falling 3.1% to their lowest closing since May 6, while shares of Tesla climbed. On Wednesday, the so-called Magnificent Seven tech stocks took a beating due to lackluster earnings from the electric vehicle maker and Google parent. As a result, the Nasdaq and S&P 500 experienced their worst day since 2022.
