Inflation eases, investors shift from Big Tech to smaller firms, major tech stocks drop

From Nasdaq: 2024-07-11 19:36:30

On Thursday, the Nasdaq and S&P 500 dropped as investors moved from Big Tech to smaller firms after softer inflation data. The Dow saw modest gains. Fed rate cut expectations in September rose with easing inflation reported in June’s Consumer Price Index. Major tech stocks like Nvidia, Apple, and Tesla faced significant losses.

The Russell 2000 index of small-cap companies surged, reflecting investor optimism over potential rate cuts benefiting smaller firms. The S&P 500 real estate index saw gains, while communication services and information technology indexes fell over 2%. Airlines, including Delta, experienced stock slumps due to consumer financial pressure from inflation.

Investors await upcoming Producer Price Index data and second-quarter earnings from major banks. Citigroup faced a fall after regulatory fines, while Conagra Brands dropped on a disappointing revenue and profit outlook. The S&P 500 had more advancing than declining stocks at a ratio of 3.7-to-1.



Read more at Nasdaq: Inflation Eases, but Major Tech Stocks Tumble