S&P 500 falls from record as investors rotate out of 2024 tech winners: Live updates

S&P 500 falls from record as investors rotate out of 2024 tech winners: Live updates


Traders work on the floor of the New York Stock Exchange (NYSE) on July 11, 2024 in New York City. 

Spencer Platt | Getty Images

The S&P 500 retreated from a record as investors rotated out of the big technology winners of the year like Nvidia, Microsoft and Meta. The catalyst for the move was the lowest CPI reading in more than three years, which sent rates lower and investors into small-caps and housing-related shares.

The S&P 500 fell 0.9%, retreating from a record it touched earlier in the session. The Nasdaq Composite pulled back nearly 2%, after also hitting a new record earlier in the trading day. The Dow Jones Industrial Average added 47 points, or 0.1%. Nvidia, which is up 165% on the year, lost nearly 3%.

Stock Chart IconStock chart icon

hide content

S&P 500, 1-day

The small-cap benchmark Russell 2000 Index gained 3.3% as investors hoped for a Federal Reserve rate cut in September and an economic soft landing following the inflation data.

Housing-related shares such as Home Depot and D.R. Horton jumped on the hope lower rates would reignite a stalling housing market. Industrial stocks like Caterpillar also gained.

The consumer price index fell 0.1% last month from May, bringing the annual inflation rate down to 3%. Economists surveyed by Dow Jones had expected a 0.1% monthly increase and a 3.1% annual rate. Core CPI, which excludes food and energy, came in at a 3.3% annual rate, also lower than economists expected.

Treasury yields fell following the CPI data as traders upped their bets for interest rate cuts.

“With another good CPI print under their belt, the window is open for the Federal Reserve to cut interest rates as early as September, and potentially again in December, assuming the inflation data continues to cooperate,” said Skyler Weinand, chief investment officer at Regan Capital.

Odds of a September rate cut rose to greater than 80% based on fed funds futures trading following the CPI data, according to the CME FedWatch tool. Traders still see the Fed standing pat at its meeting later this month.

Investors also took some money off the table following a big rally on Wednesday. The S&P 500 added 1% on Wednesday to close above 5,600 for the first time, while the Nasdaq Composite advanced 1.18% to a record close. The 30-stock Dow gained 429.39 points on the day.



Source

Putin proposes direct peace talks with Ukraine after three years of war
World

Putin proposes direct peace talks with Ukraine after three years of war

President of Russia Vladimir Putin and General Secretary of the Communist Party of Vietnam Central Committee To Lam hold a signing ceremony following their meeting in Moscow, Russia on May 10, 2025. Anadolu | Anadolu | Getty Images Russian President Vladimir Putin on Sunday proposed direct talks with Ukraine on May 15 in the Turkish […]

Read More
Fragile ceasefire holds between India, Pakistan as Trump offers more help
World

Fragile ceasefire holds between India, Pakistan as Trump offers more help

Residents read morning Urdu newspapers with the headline ‘The ceasefire between Pakistan and India’ on a roadside in Muzaffarabad, the capital of Pakistan-administered Kashmir, on May 11, 2025. Sajjad Qayyum | Afp | Getty Images A fragile ceasefire was holding between India and Pakistan on Sunday, after hours of overnight fighting between the nuclear-armed neighbours, […]

Read More
U.S.-China tariff talks to continue Sunday, official tells the AP
World

U.S.-China tariff talks to continue Sunday, official tells the AP

Sensitive talks between U.S. and Chinese delegations over tariffs that threaten to upend the global economy ended after a day of prolonged negotiations and will resume Sunday, an official told The Associated Press. There was no immediate indication whether progress was made Saturday during the meeting over 10 hours between Treasury Secretary Scott Bessent and […]

Read More