S&P 500 futures were little changed Thursday night after a decline in tech giants weighed on the broad market index.
Investors continued moving out of tech names on Thursday, causing the
Nasdaq Composite to pull back 0.46% and notch its first four-day string of losses since February. The S&P 500 slipped 0.01%. On the other hand, a rotation into healthcare, financial and industrial names boosted the blue-chip Dow 71.72 points, or 0.14%, higher. Apple lost 6% after announcing price hikes on its iPads and MacBooks, pointing to surging demand for memory and storage. Microsoft lost more than 3% after announcing higher prices on its Xbox gaming systems, citing surging component costs. Fellow tech giants Alphabet and Meta Platforms also closed the session lower.
"This is a market that we think is quite set up to test conviction. We have this flavor of market leadership in specifically semiconductors and memory chip leaders,"
said Julia Hermann, global market strategist New York Life Investment Management, on CNBC's " Closing Bell" on Thursday afternoon. "This is a structurally more volatile flavor of tech than we saw in the Magnificent Seven for the past several years."
Hermann added: "Then you pair that with an astonishing repricing in Fed expectations — not just the what, but the why of why the Fed might be hiking next — and you have this environment, which is candidly a recipe for volatility."
Thursday's losses compounded the Nasdaq Composite's existing week-to-date declines. The index is currently on pace to end 4.4% lower, followed by the S&P 500, which is down 1.9% on the week. The Dow, on the other hand, is bucking the trend with a week-to-date gain of 0.7%.
On Friday morning, traders will watch out for May's preliminary wholesale inventories and June's final University of Michigan sentiment reading.
Where the major averages stand
Six of the 11 GICS sectors rise on Thursday
Six of the 11 GICS sectors rose to end Thursday's trading session.
Gains were led by industrials stocks, up 2.19%. The second- and third-best sector performers were healthcare and materials stocks, which gained 1.49% and 1.39%, respectively.
On the other hand, the consumer discretionary sector was the day's laggard and dropped 1.78%. This was followed by the consumer staples and communication services sectors, which respectively fell 1.08% and 1.02%.
— Lisa Kailai Han
<small>Source: CNBC</small>
