Today’s meeting also ended with a fall S&P 500 and Nasdaqextending yesterday’s losses as investors continued to dump major technology stocks. The fresh selloff in tech stocks overshadowed economic data that had boosted confidence that the Fed will finally achieve a soft landing.
About 300 stocks in the S&P 500 rose — but the index ultimately closed down 0.5% at 5,399.22. While economy-sensitive stocks such as energy, industrials and financial services rose, the most powerful technology sector came under renewed pressure. The Nasdaq fell 0.9% to 17,181.72.
However, the Dow Jones Index managed to resist the decline, rising 81.20 points, or 0.2%, to close at 39,935.07. Earlier in the session, the blue-chip index was up more than 500 basis points, or 1.5%.
The Russell 2000 for small-cap stocks rose 1.26% as investors continued to shift into small-cap stocks.
Investors sold off tech stocks for a second session. Nvidia posted losses of 2%, while Advanced Micro Devices fell more than 4%. The VanEck Semiconductor Index lost 2%, while shares of major companies including Meta Platforms and Microsoft fell 2%. Alphabet posted losses of more than 3%.
Investors found some support in second-quarter U.S. GDP data, which recorded a faster-than-expected 2.8% pace versus 1.4% in the first quarter.
Investors see the recent decline as a sign of an overvalued and overbought market that is starting to shift away from large-cap technology stocks and toward smaller-cap stocks and more cyclical sectors.
Ford Motor Co shares plunged 18% in their worst session since 2008 after second-quarter earnings fell short of expectations.