A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.
- MAGS ETF is moving fast. Check live prices here.
Shares of Palantir Technologies Inc. (NASDAQ:PLTR) — a poster child of the AI-driven rally — fell another 4% by midday, paring steeper early losses. The drop followed Tuesday's 9.4% plunge, marking the stock's worst two-day slump since April.
- The Nasdaq 100 slid about 1%, underperforming other major indexes
- The S&P 500 eased 0.46%
- The Russell 2000 lost 0.56%
- The Dow Jones dipped 0.12%
Investors now await the release of the Fed's July meeting minutes, due at 2:00 p.m. ET. Last month, Governors Bowman and Waller dissented in favor of a rate cut, opposing the majority who voted to keep rates unchanged.
Meanwhile, President Trump called for the resignation of Democratic-appointed Fed Governor Lisa Cook. U.S. Federal Housing Finance Agency director William Pulte alleged in a letter to Attorney General Pam Bondi that Cook “potentially” committed mortgage fraud.
Traders are currently pricing in an 85% chance of a 25-basis-point cut next month.
Commodities rebounded from Tuesday's sharp selloff, with gold, silver, and crude oil each rising about 1%. Cryptocurrencies also found support, with Bitcoin (CRYPTO: BTC) up 0.9% after two straight sessions of losses.
Wednesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % |
| Dow Jones | 44,906.95 | -0.12% |
| S&P 500 | 6,386.32 | -0.46% |
| Russell 2000 | 2,262.90 | -0.56% |
| Nasdaq 100 | 23,174.78 | -1.00% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) eased 0.4% to $585.57.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) paused at $449.29.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) dropped 0.9% to $564.81.
- The iShares Russell 2000 ETF (NYSE:IWM) fell 0.5% to $225.12.
- The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 0.9%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1%.
Stocks On The Move Wednesday
- Target Corp. (NYSE:TGT) sank 7% despite topping Wall Street's earnings estimates, as weak sales guidance weighed on shares.
- Other earnings movers included Lowe's Companies Inc. (NYSE:LOW), up 0.6%; Estee Lauder Companies Inc. (NYSE:EL), down 3.6%; Analog Devices Inc. (NASDAQ:ADI), up 4.8%; Toll Brothers Inc. (NYSE:TOL), up 1%; Alcon Inc. (NYSE:ALC), down 9%; and Hertz Global Holdings Inc. (NASDAQ:HTZ), up 5.5%.
- After the close, earnings are due from Salesforce Inc. (NYSE:CRM) and Synopsys Inc. (NASDAQ:SNPS).
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