Stock Market Today, July 1: Meta Shakes Up Cloud Sector and Tech Stocks Weigh on Markets
The Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.66% to 26,040.03 as tech profit-taking intensified, while the S&P 500 (SNPINDEX:^GSPC) slipped 0.22% to 7,483.23 on manufacturing growth concerns, and the Dow Jones Industrial Average (DJINDICES:^DJI) hit an intraday record high before finishing down 0.03% to 52,305.24.
Gold edged up 0.26% to $4,048.90 as of U.S. market close, while the 10-Year Treasury yield rose 0.06% to 4.48%. Communications and financial services stocks led sector gains, while industrials and tech stocks declined.
Today's biggest moves
Palantir Technologies climbed 8% on a deal with Nvidia. Meta Platforms surged on news that it would move into cloud computing. The news pressured infrastructure stocks like CoreWeave, which tumbled 14%. Memory stocks also dropped today: Both Micron Technology and Sandisk plummeted 11%, potentially due to profit-taking or AI demand jitters.
What this means for investors
Chipmaker losses dragged on major U.S. indexes today, but the majority of S&P 500 firms posted gains on easing inflation concerns. Outside of Meta’s news and possible profit taking, another potential trigger for the pullback in chipmakers was news that renowned short-seller Michael Burry had shorted several AI leaders, including Nvidia and Applied Materials.
Zooming out, June manufacturing growth slowed, and prices dropped a little, per the Institute for Supply Management. Federal Reserve Chairman Kevin Warsh gave few clues about potential rate changes when he spoke at the European Central Bank Forum today, though the new leader stressed his commitment to bringing inflation down. Falling oil prices will certainly help.
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Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Applied Materials, Meta Platforms, Micron Technology, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
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