Topline
The Nasdaq and S&P 500 indexes dropped sharply Thursday and posted their worst trading days since late April, as tech stocks cooled off following a rally led by Apple and Nvidia on Wednesday that sent the indexes to all-time highs.
The indexes are up more than 17% on the year. (Photo by Spencer Platt/Getty Images)
Key Facts
The Nasdaq closed down 1.9% at 18,283.41, a decrease not seen since April 30, when the index closed down more than 2%.
The S&P 500 closed at 5,584.54, also experiencing its worst drop (.88%) since April 30, when the index closed down 1.57%.
The drops came amid large selloffs from tech stocks such as Nvidia (-5.57%), Meta (-4.11%), Microsoft (-2.48%) and Apple (-2.32%), the latter of which hit a record-high market capitalization of $3.57 trillion Thursday.
Despite the losses, the Nasdaq and S&P 500 are still up big on the year, surging up 21.8% and 17.1%, respectively, since January.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Key Background
The drops from the indexes and tech stocks materialized following a consumer price index report from the Bureau of Labor Statistics that revealed a 0.1% decrease in consumer prices from May to June and a 3%, year-over-year increase. Consumer prices have not fallen on a month-to-month basis since 2020. Core inflation, which includes food and energy prices, was 3.3% last month, beating expectations that projected 3.4%.
Tangent
The report contributed to Thursday’s tech selloff, which also included Tesla. The electric vehicle maker’s shares dropped more than 8%, closing at $241.03 and putting a dent in a rally that began in late June, when Tesla’s stock was priced at $197.88 per share. The net worth of Tesla chief Elon Musk dropped by more than $12 billion Thursday to $245.7 billion, though the tech billionaire still retained his title as the world’s wealthiest person ahead of Amazon founder Jeff Bezos and LVMH chief Bernard Arnault.
Further Reading
Apple And Nvidia Stocks Boost S&P 500 And Nasdaq To All-Time Highs (Forbes)
