SPX: S&P 500 Extends Decline by 0.5% as Tech Shares Fail to Rebound for Third Day

Broad-based index made an attempt to reel out of slump but the going got tough in the final hours of the session.

• The S&P 500 dipped in red paint for the third straight day on Thursday, bringing its losses over the period to almost 3%. The broad-based index tumbled 0.5% in regular trading as shares of technology companies couldn’t take off despite an early-session rebound that fizzled later in the day. The tech-dense Nasdaq Composite IXIC fell 0.9% after it washed out 3.6% a day earlier to its biggest drop since 2022.
• Investors continued their sweeping rotation out of the AI-dominated technology sector and into smaller companies that have lagged behind tech highflyers. The 30-stock Dow Jones Industrial Average DJI posted a win after data showed the US economy stayed strong despite elevated interest rates. US gross domestic product (GDP) — the value of goods and services produced locally — rose by 2.4% in the second quarter, outstripping the 1.4% clip in the first quarter.
• Consumer stocks, energy companies and financial institutions — the ones that are deeply intertwined with the economy — moved higher after the GDP report, displaying the winners-to-laggards rotation in full swing. Today, markets are eyeing the release of the Federal Reserve’s favored inflation measure — PCE. Short for personal consumption expenditures, the report is expected to show price growth eased to 2.4% in June.