Stock futures are flat Thursday after S&P 500 suffers worst day since April: Live updates
What caused the S&P 500's worst performance since April?
The S&P 500's worst performance since April was caused by investors' rotation out of megacap tech stocks, spurred by a consumer price index report showing a 0.1% monthly decline in June. Traders moved towards areas of the market that would benefit from Federal Reserve interest rate cuts, such as small-cap stocks.
How did the Nasdaq Composite perform in the main trading session?
The Nasdaq Composite experienced a decline in the main trading session, losing 1.95%. This drop was attributed to investors' rotation out of megacap tech stocks, leading to a decrease in Nvidia by 5.6% and a 4.1% decline for Meta Platforms. The tech-heavy index broke its seven-day winning streak, marking its worst day since April 30.
What sparked investors' rotation out of megacap tech stocks?
Investors' rotation out of megacap tech stocks was sparked by a consumer price index report that showed a 0.1% monthly decline in June. This led traders to focus on areas of the market that would benefit from Federal Reserve interest rate cuts, such as small-cap stocks. As a result, the Russell 2000 index jumped about 3.6%.