Tech Stocks Drag Down S&P 500

But it was a good day for smaller stocks
By Newser Editors and Wire Services
Posted Jun 7, 2023 3:44 PM CDT
Tech Stocks Drag Down S&P 500
A pedestrian walks past the smoke and haze-shrouded New York Stock Exchange building in New York City, Wednesday, June 7, 2023.   (AP Photo/J. David Ake)

US stocks drifted to a mixed finish Wednesday, as drops for Microsoft and other big-name tech stocks overshadowed gains across much of the rest of Wall Street. The S&P 500 fell 16.33, or 0.4%, to 4,267.52 even though the majority of stocks within the index rose. The Dow Jones Industrial Average gained 91.74, or 0.3%, to 33,665.02, while the Nasdaq composite fell 171.52, or 1.3%, to 13,104.89. Microsoft, Amazon, Nvidia and Alphabet all sank at least 3% and were the heaviest weights on the S&P 500, the AP reports. Because they're some of Wall Street's most valuable stocks, their movements pack extra punch on the index.

It's a reversal from much of this year, where a narrow group of high-growth stocks led the way on hopes for easier interest rates from the Federal Reserve and excitement around artificial intelligence. But tech stocks are seen as some of the hardest hit by higher interest rates, and yields were on the rise in the Treasury market. Yields climbed after the Bank of Canada raised its policy interest rates on Wednesday, surprising some investors after it had left rates steady since January. The Fed will make its own decision on rates next week.

Campbell Soup, meanwhile, sank 8.9% after reporting weaker revenue for the latest quarter than expected. It also gave a forecast for earnings that fell short of analysts’ expectations, as price increases push some customers to buy less. But much of the rest of the market rose as the gains on Wall Street broadened out. The Russell 2000 index of smaller stocks jumped 1.8% to continue its hot streak since a stronger-than-expected report on hiring last week suggested a recession may be further off than feared. On the winning side of Wall Street was Dave & Buster’s, which jumped 18.3% after reporting stronger profit for the latest quarter than expected.

(Read more stock market stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.