Tech Stocks Tumble as Wall Street Faces Volatility

Stock Market Today: Big Tech Stocks Plunge Again as Divide With Rest of Wall Street Widens

NEW YORK (AP) -- Big technology stocks fell again Wednesday, hurt by concerns about a potential escalation in trade tensions with China, sending stock indexes toward their worst day in months, but conditions may be less daunting beneath the surface, with nearly as many U.S. stocks rising as falling. The split sent the S&P 500 down 1.1% a day after hitting an all-time high for the 38th time this year. The Nasdaq Composite fell 2.1% and is on track for its worst day since January, also weighed down by losses for those companies. The heavyweights of the market as Nvidia and Apple. But the Dow Jones Industrial Average was up 103 points, or 0.3%, from its record high set the day before, as of 10:45 a.m. ET. The small-cap Russell 2000 also held up better than the rest of the market, down 0.5%, after roaring in recent days on hopes that Interest rates are about to get easier and the American Economy will help avoid a recession. It's a continuation of a recent trend that market watchers have called encouraging, one in which more stocks are rising rather than a handful of overwhelming elites. Markets focused on chip companies, which fell after a Bloomberg News report said President Joe Biden was considering the harshest possible trade restrictions if companies like the Netherlands ASML and Tokyo Electron in Japan continue to ship advanced semiconductor technologies to China. The U.S. government has Chinese access blocked advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. ASML shares fell 10.6% in U.S. trading, even though the company reported spring sales at the high end of its forecast. Tokyo Electron shares fell 7.5% in Tokyo, cutting its annual gain to 32.2%. Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the Beijing-claimed self-ruled island, which the United States is obligated by treaty to defend if attacked. Taiwan should pay us for our defense, Trump said, according to a transcript of an interview published by Bloomberg. Taiwan took our chip business, I mean, how stupid are we? he said. TSMC shares in the United States fell 6.1%. The fallout has hit chip stocks around the world, including big U.S. players that have been among Wall Street's biggest stars this year amid a frenzy around artificial intelligence technologyNvidia fell 5.6% after soaring 155.2% this year the previous day. Advanced Micro Devices fell 7.8% and Broadcom fell 5%. The moves in the stocks of big tech companies have an outsized effect on indexes like the S&P 500, which give more weight to larger companies. That's been a boon in recent years, when a small group of companies known as the "Magnificent Seven" have been able to soar almost independently of developments in the broader economy and interest rates. That has helped mask underlying weakness as the economy struggles with high interest rates that are supposed to stifle inflation. Today, some critics say the Marvelous Seven stocks are overpriced, and investors are once again turning to less favorable parts of the market. The economy has remained remarkably resilient so far, with the jobs market remaining strong, and investors widely expect the Federal Reserve to begin cutting interest rates in September, as inflation has slowed. Markets can't continue to rise indefinitely based on just a handful of stocks, said JJ Kinahan, CEO of IG North America. Johnson & Johnson, whose stock is still down slightly year-to-date, jumped 2.9% after beating analysts' earnings forecasts in the latest quarter. That's a big reason why the Dow Jones Industrial Average was able to advance despite declines in all seven major stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. US Bancorp, which has also lagged the rest of the market this year, rose 4.5% after beating analysts' forecasts for both profit and revenue. Prologis, whose stock has been down year-to-date, jumped 6.1%, becoming one of the strongest stocks of the day in the S&P 500. The company, which owns logistics real estate around the world, reported better-than-analyst results for its latest quarter. While CEO Hamid Moghadam said customer demand remains subdued, it is improving and he expects that trend to continue. On the losing side of Wall Street was Five belowa retailer that targets teens and tweens with products priced at $5 or less. It fell 19.9% after its CEO, Joel Anderson, resigned from his position and the board. It also gave a second-quarter profit forecast that fell short of analysts' expectations. Spirit Airlines fell 9% after the low-cost carrier lowered its second-quarter revenue forecast. It said its revenue from fees outside of tickets was lower than expected. In the bond market, the yield on the 10-year Treasury rose from 4.16% to 4.18% on Tuesday evening. On foreign stock markets, London's FTSE 100 rose 0.4% after the data showed The inflation rate remained stable in June, at the Bank of England's 2% target. Evidence was mixed elsewhere in Europe and Asia. ___ AP Business writer Elaine Kurtenbach contributed to this report.

Stock market today: Big tech stocks dive again to halt Wall Street's record-setting rally

NEW YORK (AP) -- Wall Street's record-breaking rally is running into a wall Wednesday, as worries about potentially worsening trade tensions with China hit stocks of chip companies. That's dragging indexes to their worst day in months, but conditions may be less discouraging underneath the surface. The S&P 500 dropped 1.3% a day after it set an all-time high for the 38th time this year. The Nasdaq composite slumped 2.6% and was on track for its worst day since 2022, also weighed by losses for such market heavyweights as Nvidia and Apple. But more stocks in the S&P 500 were still rising than falling, and the Dow Jones Industrial Average was adding 234 points, or 0.6%, to its record set a day earlier, as of 3:20 p.m. Eastern time. The mix offers a continuation of a recent trend that market watchers have called encouraging, one where more stocks are rising rather than just a handful of overpowering elites. The smaller stocks in the Russell 2000 are coming off a big five-day winning streak on hopes that interest rates are about to get easier and the U.S. economy will avoid a recession, though the index fell 0.8% Thursday to give back some of those gains. The market's spotlight was squarely on chip companies, which tumbled after a report from Bloomberg News said President Joe Biden is considering the most severe trade restrictions available if companies like the Netherlands' ASML and Japan's Tokyo Electron continue to ship advanced semiconductor technology to China. The U.S. government has blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. ASML saw its stock trading in the United States drop 12.7% even though it reported sales for the spring that came in at the high end of its forecasted range. Shares of Tokyo Electron, meanwhile, dropped 7.5% in Tokyo to cull its gain for the year to 32.2%. Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the self-governed island claimed by Beijing, which the U.S. is obligated by treaty to defend if it is attacked. "Taiwan should pay us for defense," Trump said according to a transcript of an interview published by Bloomberg. "Taiwan took our chip business from us, I mean, how stupid are we?" he said. TSMC's stock trading in the United States dropped 7.3%. Reverberations reached chip stocks around the world, including big U.S. players that have been some of Wall Street's biggest stars this year amid a frenzy around artificial-intelligence technology. Nvidia fell 6.1% after soaring 155.2% this year through the day before. Advanced Micro Devices fell 8.8%, and Broadcom dropped 7%. Big Tech stocks' movements have an outsized effect on indexes like the S&P 500, which give more weight to companies of bigger size. That was a boon in recent years, when a small group of companies known as "the Magnificent Seven" was able to soar almost regardless of what the overall economy and interest rates were doing. That helped mask weakness underneath the surface as the economy struggled through high interest rates meant to snuff out inflation. Now, though, some critics call those Magnificent Seven stocks too expensive, and investors are creeping back into unloved areas of the market. The economy has remained remarkably resilient so far, with the job market remaining solid, and investors widely expect the Federal Reserve to begin cutting interest rates in September because inflation has slowed. "Markets cannot continue indefinitely higher on the backs of just a handful of stocks," said JJ Kinahan, CEO of IG North America. Johnson & Johnson, whose stock had been down for the year so far, jumped 3.7% after topping analysts' forecasts for profit in the latest quarter. It was one of the largest reasons the Dow Jones Industrial Average was able to rise despite falls for each of the Magnificent Seven stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. U.S. Bancorp, which has also lagged the rest of the market this year, rallied 4.4% after topping analysts' forecasts for profit and revenue. On the losing side of Wall Street was Five Below, a retailer targeting teens and tweens with products priced at $5 or below. It tumbled 24.3% after its CEO, Joel Anderson, stepped down from his job and from the board. It also gave a profit forecast for the second quarter that fell short of analysts' expectations. Spirit Airlines lost 11.4% after the discount carrier cut its forecast for revenue in the second quarter. It said it's making fewer dollars than expected from fees outside of tickets. In the bond market, the 10-year Treasury yield dipped to 4.15% from 4.16% late Tuesday. In stock markets abroad, London's FTSE 100 rose 0.3% after data showed the inflation rate remained steady at the Bank of England's 2% target in June. Indexes were mixed elsewhere across Europe and Asia. ___ AP Business Writer Elaine Kurtenbach contributed.

Stock market today: Broad-based rally propels Wall Street to record highs, even as big tech falters | National News

NEW YORK (AP) -- U.S. stocks flirted with record highs again Tuesday after several major companies delivered better profits for the spring, which Wall Street had expected. A broad-based rally lifted five of six stocks in the S&P 500, and the index was up 0.4% in afternoon trading and on track to surpass its all-time high set last week. The Dow Jones Industrial Average led the market with a jump of 651 points, or 1.6%, a day after setting its own record. The Nasdaq Composite lagged, down 0.1% as of 2:31 p.m. ET. UnitedHealth Group led the market after reporting better-than-expected spring results despite losses from a massive cyber attackIts stock rose 6% and the health care company reported growth in the number of people served at its Optum and UnitedHealth businesses. Bank of America rose 5.5% after also reporting higher-than-expected profit for the latest quarter. It benefited growth of its investment banking business. They helped offset declines for a A handful of influential Big Tech stockswhose massive sizes give their movements an outsized effect on the indexes. Nvidiafor example, was the heaviest single weight on the S&P 500 after falling 2.1%. But the decline is only a minor setback compared to the chip company's stock price. has soared over the past year on the back of Wall Street frenzy around artificial intelligence technology. Nvidia shares are still up 154% year-to-date. Moreover, some market watchers are hoping for such a broadening of stock market performance because a market with many rising stocks is considered healthier than a market driven by just a few leading stocks. Only 24% of S&P 500 companies have outperformed the index year-to-date, according to Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management. That's down from an already low 26% last year. In another sign of companies' increased participation in the market's rise, smaller-company stocks also outperformed their larger rivals after lagging for a while. The Russell 2000 index of smaller companies jumped 2.9%, more than eight times the increase in the S&P 500. Several big winners from the previous day, who benefited from increased expectations for Former President Donald Trump to retake the White House, have made some of their immediate leaps after Trump's dodge an assassination attempt during the weekend. Trump Media and Technology Group fell 8.3%, a day after jumping 31.4%. Shares of the company behind Trump Social truth The platform regularly fluctuates significantly every day, both up and down. In the bond market, some of the moves from previous days were also reversed. Long-term yields fell, while short-term yields rose after a report showing US retail sales held up last month, despite economists' expectations of a decline. The yield on the 10-year Treasury note fell to 4.17% from 4.23% late Monday. It fell from 4.70% in April, a major move for the bond market and a strong boost to stock prices. Yields fell on growing expectations that inflation slows down enough to convince the Federal Reserve to begin cutting interest rates The Fed kept its key interest rate at its highest level in more than two decades in hopes of slowing the economy enough to bring inflation completely under control. The stronger-than-expected retail sales data released Tuesday may give Fed officials pause, as too much activity could keep upward pressure on inflation. But traders are still betting on a 98% chance that the Fed will cut its key interest rate in September, according to data from CME Group. A month ago, they put the probability at 70%. Risks are present on both sides of the tightrope the Federal Reserve is currently walking. The central bank hopes to ease the brakes it is applying to the economy by keeping interest rates high at the right time. Easing too late could trigger a recession, but easing too early could allow inflation to pick up steam. Tuesday's retail sales data suggested the economy remains resilient so far. In overseas stock markets, stock indices were down in most European countries. Asian indices were mixed, with Hong Kong's Hang Seng falling 1.6 percent. AP Business reporter Matt Ott contributed to this report.

Stock market today: Big tech stocks dive again as their split deepens with the rest of Wall Street

NEW YORK (AP) -- Big technology stocks are dropping again Wednesday, hurt by worries about potentially worsening trade tensions with China. That's dragging market indexes to their worst day in months, but conditions may be less discouraging underneath the surface, and nearly as many U.S. stocks are rising as falling. The split left the S&P 500 sagging by 1.1% a day after it set an all-time high for the 38th time this year. The Nasdaq composite was down 2.1% and on track for its worst day since January, also weighed by losses for such market heavyweights as Nvidia and Apple. But the Dow Jones Industrial Average was adding 103 points, or 0.3%, to its record set a day earlier, as of 10:45 a.m. Eastern time. The smaller stocks in the Russell 2000 were also holding up better than the rest of the market, down a more modest 0.5%, after roaring in recent days on hopes that interest rates are about to get easier and the U.S. economy will avoid a recession. It's a continuation of a recent trend that market watchers have called encouraging, one where more stocks are rising rather than just a handful of overpowering elites. The market's spotlight was squarely on chip companies, which tumbled after a report from Bloomberg News said President Joe Biden is considering the most severe trade restrictions available if companies like the Netherlands' ASML and Japan's Tokyo Electron continue to ship advanced semiconductor technology to China. The U.S. government has blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. ASML saw its stock trading in the United States drop 10.6% even though it reported sales for the spring that came in at the high end of its forecasted range. Shares of Tokyo Electron, meanwhile, dropped 7.5% in Tokyo to cull its gain for the year to 32.2%. Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the self-governed island claimed by Beijing, which the U.S. is obligated by treaty to defend if it is attacked. "Taiwan should pay us for defense," Trump said according to a transcript of an interview published by Bloomberg. "Taiwan took our chip business from us, I mean, how stupid are we?" he said. TSMC's stock trading in the United States dropped 6.1%. Reverberations reached chip stocks around the world, including big U.S. players that have been some of Wall Street's biggest stars this year amid a frenzy around artificial-intelligence technology. Nvidia fell 5.6% after soaring 155.2% this year through the day before. Advanced Micro Devices fell 7.8%, and Broadcom dropped 5%. Big Tech stocks' movements have an outsized effect on indexes like the S&P 500, which give more weight to companies of bigger size. That was a boon in recent years, when a small group of companies known as "the Magnificent Seven" was able to soar almost regardless of what the overall economy and interest rates were doing. That helped mask weakness underneath the surface as the economy struggled through high interest rates meant to snuff out inflation. Now, though, some critics call those Magnificent Seven stocks too expensive, and investors are creeping back into unloved areas of the market. The economy has remained remarkably resilient so far, with the job market remaining solid, and investors widely expect the Federal Reserve to begin cutting interest rates in September because inflation has slowed. "Markets cannot continue indefinitely higher on the backs of just a handful of stocks," said JJ Kinahan, CEO of IG North America. Johnson & Johnson, whose stock is still down slightly for the year so far, jumped 2.9% after topping analysts' forecasts for profit in the latest quarter. It was one of the largest reasons the Dow Jones Industrial Average was able to rise despite falls for each of the Magnificent Seven stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. U.S. Bancorp, which has also lagged the rest of the market this year, rallied 4.5% after topping analysts' forecasts for profit and revenue. Prologis, whose stock is still down for the year, jumped 6.1% to be one of the day's strongest within the S&P 500. The company, which owns logistics real estate around the world, reported stronger results for the latest quarter than analysts expected. While CEO Hamid Moghadam said demand from customers remains subdued, it is improving, and he expects that trend to continue. On the losing side of Wall Street was Five Below, a retailer targeting teens and tweens with products priced at $5 or below. It tumbled 19.9% after its CEO, Joel Anderson, stepped down from his job and from the board. It also gave a profit forecast for the second quarter that fell short of analysts' expectations. Spirit Airlines lost 9% after the discount carrier cut its forecast for revenue in the second quarter. It said it's making fewer dollars than expected from fees outside of tickets. In the bond market, the 10-year Treasury yield rose to 4.18% from 4.16% late Tuesday. In stock markets abroad, London's FTSE 100 was 0.4% higher after data showed the inflation rate remained steady at the Bank of England's 2% target in June. Indexes were mixed elsewhere across Europe and Asia. ___ AP Business Writer Elaine Kurtenbach contributed.

Stock market today: A widespread rally sends Wall Street toward records, even as Big Tech weighs

NEW YORK (AP) -- U.S. stocks are flirting again with their records on Tuesday after several big companies delivered better profits for the spring than Wall Street expected. A widespread rally was pushing the S&P 500 higher by 0.5%, and the index was on track to top its all-time high set in the middle of last week. The Dow Jones Industrial Average was leading the market with a leap of 613 points, or 1.5%, a day after setting its own record. The Nasdaq composite was 0.1%, higher as of 11:15 a.m. Eastern time. UnitedHealth Group was pushing the market higher after reporting stronger results for the spring than analysts expected, despite losses it took due to a massive cyberattack. Its stock rose 5.9%, and the health care company reported growth in people served at both its Optum and UnitedHealth businesses. Bank of America rallied 4.8% after it likewise reported stronger profit for the latest quarter than forecast. It benefited from growth at its investment banking business. The only stock to push upward on the S&P 500 nearly as much as UnitedHealth Group and Bank of America was Amazon, which rose 0.8% as the retailer launched its 10th Prime Day sales event. They helped offset drops for a handful of influential Big Tech stocks, whose massive sizes give their movements an outsized effect on indexes. Nvidia, for example, was the heaviest single weight on the S&P 500 after falling 1.5%. But that decline is just a minor pullback compared with how much the chip company's stock rocketed over the last year amid Wall Street's frenzy around artificial-intelligence technology. Nvidia shares are still up 155% for the year so far. Plus, some market watchers have been hoping to see just such a broadening out of the stock market's performance, because a market with many stocks rising is seen as healthier than one driven by just a few, dominant stocks. Only 24% of companies in the S&P 500 had been beating the index so far this year, according to Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management. That's down from last year's low tally of 26%. In another signal of more companies participating in the market's rally, stocks of smaller companies also outpaced their larger rivals after having lagged for a while. The Russell 2000 index of smaller stocks jumped 2.3%, more than quadruple the S&P 500's gain. Several big winners from the day before, which benefited from heightened expectations for former President Donald Trump to retake the White House, gave back some of their immediate jumps following Trump's dodging of an assassination attempt over the weekend. Trump Media & Technology Group fell 9%, a day after leaping 31.4%. Shares of the company behind Trump's Truth Social platform regularly swing by big percentages each day, up or down. In the bond market, some of the prior day's moves also reversed themselves. Longer-term yields were lower, while shorter-term yields rose after a report showed that sales at U.S. retailers held firm last month despite economists' expectations for a decline. The yield on the 10-year Treasury edged down to 4.19% from 4.23% late Monday. It's fallen from 4.70% in April, which is a major move for the bond market, and that has given a solid boost to stock prices. Yields have fallen on rising expectations that inflation is slowing enough to convince the Federal Reserve to begin cutting interest rates soon. The Fed has been keeping its main interest rate at the highest level in more than two decades in hopes of slowing the economy just enough to get inflation fully under control. Tuesday's stronger-than-expected data on retail sales may give Fed officials some pause, because too-strong activity could keep upward pressure on inflation. But traders are still betting on a 100% probability that the Fed will cut its main interest rate in September, according to data from CME Group. A month ago, they saw a 70% chance. Risks lie on both sides of the tightrope that the Federal Reserve is currently walking. The central bank is trying ease the brakes that it's applied to the economy through high interest rates at the precisely correct time. Easing too late could cause a recession, but easing too soon could allow inflation to reaccelerate. Tuesday's resilient data on retail sales points to an economy that can continue to grow. In stock markets abroad, indexes were lower across much of Europe. Asian indexes were mixed, with the 1.6% drop for Hong Kong's Hang Seng a big mover.

Big tech stocks plunge again as their divide with the rest of Wall Street widens - ExBulletin

NEW YORK (AP) -- Big technology stocks fell again Wednesday, hurt by concerns about a potential escalation in trade tensions with China, sending stock indexes toward their worst day in months, but conditions may be less daunting beneath the surface, with nearly as many U.S. stocks rising as falling. The split sent the S&P 500 down 1.1% a day after hitting an all-time high for the 38th time this year. The Nasdaq Composite fell 2.1% and is on track for its worst day since January, also weighed down by losses for those companies. The heavyweights of the market as Nvidia and Apple. But the Dow Jones Industrial Average was up 103 points, or 0.3%, from its record high set the day before, as of 10:45 a.m. ET. The small-cap Russell 2000 also held up better than the rest of the market, down 0.5%, after roaring in recent days on hopes that Interest rates are about to get easier and the American Economy will help avoid a recession. It's a continuation of a recent trend that market watchers have called encouraging, one in which more stocks are rising rather than a handful of overwhelming elites. The market spotlight was on chip companies, which fell after a Bloomberg News report said President Joe Biden was considering the harshest possible trade restrictions if companies like the Netherlands ASML and Tokyo Electron in Japan continue to ship advanced semiconductor technologies to China. The U.S. government has Chinese access blocked advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. ASML shares fell 10.6% in U.S. trading, even though the company reported spring sales at the high end of its forecast. Tokyo Electron shares fell 7.5% in Tokyo, cutting its annual gain to 32.2%. Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the Beijing-claimed self-ruled island, which the United States is obligated by treaty to defend if attacked. Taiwan should pay us for our defense, Trump said, according to a transcript of an interview published by Bloomberg. Taiwan took our chip business, I mean, how stupid are we? he said. TSMC shares in the United States fell 6.1%. The fallout has hit chip stocks around the world, including big U.S. players that have been among Wall Street's biggest stars this year amid a frenzy around artificial intelligence technologyNvidia fell 5.6% after soaring 155.2% this year the previous day. The moves in the stocks of big tech companies have an outsized effect on indexes like the S&P 500, which give more weight to larger companies. That's been a boon in recent years, when a small group of companies known as the "Magnificent Seven" have been able to soar almost independently of developments in the broader economy and interest rates. That has helped mask underlying weakness as the economy struggles with high interest rates that are supposed to stifle inflation. Today, some critics say the Marvelous Seven stocks are overpriced, and investors are once again turning to less favorable parts of the market. The economy has remained remarkably resilient so far, with the jobs market remaining strong, and investors widely expect the Federal Reserve to begin cutting interest rates in September, as inflation has slowed. Markets can't continue to rise indefinitely based on just a handful of stocks, said JJ Kinahan, CEO of IG North America. Johnson & Johnson, whose stock is still down slightly year-to-date, jumped 2.9% after beating analysts' earnings forecasts in the latest quarter. That's a big reason why the Dow Jones Industrial Average was able to advance despite declines in all seven major stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. US Bancorp, which has also lagged the rest of the market this year, rose 4.5% after beating analysts' forecasts for both profit and revenue. Prologis, whose stock has been down year-to-date, jumped 6.1% to become one of the day's strongest stocks in the S&P 500. The company, which owns logistics real estate around the world, reported stronger results for the latest quarter than analysts had expected. While CEO Hamid Moghadam said customer demand remains subdued, it is improving and he expects that trend to continue. On the losing side of Wall Street was Five belowa retailer that targets teens and tweens with products priced at $5 or less. It fell 19.9% after its CEO, Joel Anderson, resigned from his position and the board. It also gave a second-quarter profit forecast that fell short of analysts' expectations. Spirit Airlines fell 9% after the low-cost carrier lowered its second-quarter revenue forecast. It said its revenue from fees outside of tickets was lower than expected. In the bond market, the yield on the 10-year Treasury rose from 4.16% to 4.18% on Tuesday evening. On foreign stock markets, London's FTSE 100 was up 0.4% after the data showed The inflation rate remained stable in June, at the Bank of England's 2% target. Evidence was mixed elsewhere in Europe and Asia. ___ AP Business Writer Elaine Kurtenbach contributed to this report.

Wall Street's record hot streak just hit a wall

The S&P 500 dropped 1.3% a day after it set an all-time high for the 38th time this year. The Nasdaq composite slumped 2.6% and was on track for its worst day since 2022, also weighed by losses for such market heavyweights as Nvidia and Apple. But more stocks in the S&P 500 were still rising than falling, and the Dow Jones Industrial Average was adding 234 points, or 0.6%, to its record set a day earlier, as of 3:20 p.m. Eastern time. The mix offers a continuation of a recent trend that market watchers have called encouraging, one where more stocks are rising rather than just a handful of overpowering elites. The smaller stocks in the Russell 2000 are coming off a big five-day winning streak on hopes that interest rates are about to get easier and the U.S. economy will avoid a recession, though the index fell 0.8% Thursday to give back some of those gains. The market's spotlight was squarely on chip companies, which tumbled after a report from Bloomberg News said President Joe Biden is considering the most severe trade restrictions available if companies like the Netherlands' ASML and Japan's Tokyo Electron continue to ship advanced semiconductor technology to China. The U.S. government has blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. ASML saw its stock trading in the United States drop 12.7% even though it reported sales for the spring that came in at the high end of its forecasted range. Shares of Tokyo Electron, meanwhile, dropped 7.5% in Tokyo to cull its gain for the year to 32.2%. Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the self-governed island claimed by Beijing, which the U.S. is obligated by treaty to defend if it is attacked. "Taiwan should pay us for defense," Trump said according to a transcript of an interview published by Bloomberg. "Taiwan took our chip business from us, I mean, how stupid are we?" he said. TSMC's stock trading in the United States dropped 7.3%. Reverberations reached chip stocks around the world, including big U.S. players that have been some of Wall Street's biggest stars this year amid a frenzy around artificial-intelligence technology. Nvidia fell 6.1% after soaring 155.2% this year through the day before. Advanced Micro Devices fell 8.8%, and Broadcom dropped 7%. Big Tech stocks' movements have an outsized effect on indexes like the S&P 500, which give more weight to companies of bigger size. That was a boon in recent years, when a small group of companies known as "the Magnificent Seven" was able to soar almost regardless of what the overall economy and interest rates were doing. That helped mask weakness underneath the surface as the economy struggled through high interest rates meant to snuff out inflation. Now, though, some critics call those Magnificent Seven stocks too expensive, and investors are creeping back into unloved areas of the market. The economy has remained remarkably resilient so far, with the job market remaining solid, and investors widely expect the Federal Reserve to begin cutting interest rates in September because inflation has slowed. "Markets cannot continue indefinitely higher on the backs of just a handful of stocks," said JJ Kinahan, CEO of IG North America. Johnson & Johnson, whose stock had been down for the year so far, jumped 3.7% after topping analysts' forecasts for profit in the latest quarter. It was one of the largest reasons the Dow Jones Industrial Average was able to rise despite falls for each of the Magnificent Seven stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. U.S. Bancorp, which has also lagged the rest of the market this year, rallied 4.4% after topping analysts' forecasts for profit and revenue. On the losing side of Wall Street was Five Below, a retailer targeting teens and tweens with products priced at $5 or below. It tumbled 24.3% after its CEO, Joel Anderson, stepped down from his job and from the board. It also gave a profit forecast for the second quarter that fell short of analysts' expectations. Spirit Airlines lost 11.4% after the discount carrier cut its forecast for revenue in the second quarter. It said it's making fewer dollars than expected from fees outside of tickets. In the bond market, the 10-year Treasury yield dipped to 4.15% from 4.16% late Tuesday. In stock markets abroad, London's FTSE 100 rose 0.3% after data showed the inflation rate remained steady at the Bank of England's 2% target in June. Indexes were mixed elsewhere across Europe and Asia.

Dow rallies 700 points for best day in more than a year, Russell 2000 small-cap index jumps 3%

The Dow Jones Industrial Average advanced to new highs on Tuesday, as the bull market broadened out beyond technology names on hopes of forthcoming interest rate cuts. The Dow surged by 742.76 points, or 1.85%, to close at 40,954.48. The 30-stock index hit an all-time high and closed at a record, in addition to notching its best session since June 2023. The small cap-focused Russell 2000 rose more than 3% for its fifth straight day of gains. The S&P 500 added 0.64%, closing at 5,667.20. The Nasdaq Composite ended the day higher by just 0.2% at 18,509.34, lagging as technology names largely sat out of Tuesday's rally. Industrial bellwether Caterpillar climbed more than 4%, making it the second-biggest gainer in the Dow behind UnitedHealth. The insurer advanced 6.5% on the back of better-than-expected second-quarter results. Financials -- another trailing bull market group -- gained after earnings from Bank of America and Morgan Stanley came in ahead of analyst forecasts. Bank of America jumped more than 5%, while Morgan Stanley added nearly 1%. The rotation from megacap technology shares into small-cap and cyclical stocks began a week ago when June's consumer price index showed the lowest inflation in three years. The reading was seen as a sign that inflation was nearing the Federal Reserve's 2% target, and the central bank might be able to lower interest rates. Traders now see 100% odds the Fed will lower rates in September, according to the CME FedWatch tool. A rate cut is seen as boosting small caps and industrials more reliant on borrowing costs than cash-rich, megacap technology stocks that have been riding a wave of optimism around artificial intelligence. In the last one week alone, the Russell 2000 has soared more than 11%, while the blue-chip Dow has gained more than 4%. The Nasdaq is up just 0.4% over the same period. Notably, AI darling Nvidia and Google parent Alphabet dropped more than 1% each on Tuesday. This extended their losses over the past week as the rest of the market has taken off. "There's a lot of momentum behind this rotation trade from big-cap tech into small caps and into the average stock," said Ross Mayfield, investment strategist at Baird. "It's a rotation, but it's much more about the upside in the more cyclical sectors in the market than a referendum on AI's long-term potential." Retail sales data out Tuesday further validated investors' belief that the Fed had achieved a so-called soft landing with the economy. June sales were unchanged, versus expectations for a decline. Excluding autos, Junes sales rose 0.4%, a larger gain than the 0.1% consensus forecast collected by Dow Jones. This data "should be positive for markets," said Quincy Krosby, chief global strategist at LPL Financial. "Investors prefer the launch of a Fed easing cycle to begin with a still solid economic backdrop."