Tech, Blue Chip Stocks Drop; Small Caps, Real Estate Rebound As Yields Ease; Solar Industry Shines: What's Driving Markets Thursday?
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 (NYSE: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 (NASDAQ: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 (NYSE:GLD), rose 0.4%, and Bitcoin (CRYPTO: BTC) surged 1.5%.
Thursday’s Performance In Major U.S. Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Russell 2000 | 2,063.68 | 1.3% |
| S&P 500 | 5,257.77 | -0.2% |
| Nasdaq 100 | 18,639.71 | -0.5% |
| Dow Jones | 38,205.02 | -0.6% |
According to Benzinga Pro Data
- The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.3% lower to $524.63
- The SPDR Dow Jones Industrial Average (NYSE: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 (NYSE:XLRE) outperformed, up by 1.3%, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.5%.
- Industry-wise, solar stocks, as tracked by the Invesco Solar ETF (NYSE:TAN), rallied 2.8%.
Thursday’s Stock Movers
- Salesforce Inc. (NASDAQ:CRM) plummeted 20%, eyeing the sharpest drop in nearly 20 years, after missing quarterly revenue and issuing a lower-than-expected guidance.
- HP Inc. (NYSE: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. (NYSE:KSS), down 23%; Dollar General Corp. (NYSE:DG), down 5.9%; Best Buy Co. Inc (NYSE:BBY) up 12.6%, Hormel Foods Inc. (NYSE:HRL) down 8.5%, Burlington Stores Inc. (NYSE:BURL) down 19%; Birkenstock Holding plc (NYSE:BIRK) up 11%; Agilent Technologies Inc. (NASDAQ:A), down 8%; Pure Storage Inc. (NYSE:PSTG), up 1.8%; Okta Inc. (NASDAQ:OKTA), down 5.9%; Nutanix Inc. (NASDAQ:NTNX), down 22%; Ui Path Inc. (NYSE:PATH), down 34% and Credo Technology Group Holding Ltd. (NASDAQ:CRDO), up 21%.
- Large-cap companies slated to report earnings after the close include Costco Corp. (NASDAQ:COST), Dell Technologies Inc. (NYSE:DELL), Marvell Technology Inc. (NASDAQ:MRVL), Veeva Systems Inc. (NYSE:VEEV), NetApp Inc. (NASDAQ:NTAP), Zscaler Inc. (NASDAQ:ZS), MongoDB Inc. (NASDAQ:MDB), Ulta Beauty Inc. (NASDAQ:ULTA), The Cooper Companies Inc. (NASDAQ:COO), SentinelOne Inc. (NYSE:S), Gap Inc. (NYSE:GPS) and HashiCorp Inc. (NASDAQ:HCP).
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