The Dow Jones Industrial Average (^DJI -0.85%) fell 0.85% to 53,885, the S&P 500 (^GSPC -0.18%) slipped 0.18% to 7,710 while hovering near record levels, and the Nasdaq Composite (^IXIC -0.06%) edged 0.06% lower to 26,348 as technology sector guidance weighed on markets.
Today’s Change
Index Level
7,709.96
Gold prices fell 0.10% higher to $4,240.35 as of U.S. market close, and the 10-Year Treasury yield rose 0.07% to 4.68%. Industrials and communication stocks were the top gainers, and real estate and utilities fell the furthest.
Today’s biggest moves
Datadog plummeted 19.03% despite an earnings beat, and Duolingo sank 9.41% on a disappointing revenue outlook. Honeywell Aerospace retreated 23.16% on disappointing quarterly results. Conversely, Arm bucked the broader technology sell-off with a 4.41% gain in Thursday’s session. Sandisk and Western Digital dropped despite solid earnings.
What this means for investors
Oil prices rose today as tensions in Yemen escalated and uncertainty over reopening the Strait of Hormuz grew. This reignited concerns about energy-price-driven inflation and pulled major indexes back from this week’s highs, in what has become a familiar pattern this year. Tomorrow’s employment report will give investors further clues about whether the Federal Reserve might raise interest rates this year.
Software stocks sank dramatically today as results from Datadog, AppLovin, and HubSpot triggered a broad sell-off. The sector has struggled with artificial intelligence (AI) replacement fears and, until today, had been starting to recover slightly. However, today’s fairly indescriminate pullback could reflect a broader lack of conviction.
Sandisk also failed to excite investors who’d been hoping for blowout results. This, combined with recent turbulence in South Korean stocks, caused memory stocks to drop as investors assess whether the current valuations are justified.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arm Holdings, Datadog, Duolingo, Honeywell Aerospace, HubSpot, and Western Digital. The Motley Fool has a disclosure policy.
