U.S. equities pulled back as investors rotated out of technology stocks and into sectors more closely tied to broader economic improvement.
The S&P 500 slipped 0.84% to close at 6,917.81. The Dow Jones Industrial Average fell 166.67 points, or 0.34%, ending at 49,240.99, after earlier climbing as much as 0.5% to a fresh intraday record of 49,653.13. The Nasdaq Composite led losses, sliding 1.43% to settle at 23,255.19.
Technology stocks were broadly lower, with most members of the “Magnificent Seven” under pressure. Microsoft and Meta Platforms each dropped more than 2%, while Apple edged slightly lower. Nvidia sank nearly 3%, extending its losses for the year. Software names continued their 2026 decline, with ServiceNow and Salesforce tumbling close to 7% apiece.
Palantir stood out among tech shares, jumping nearly 7% after reporting strong fourth-quarter results and issuing upbeat guidance. The stock was up as much as 11% earlier in premarket trading.
Weakness extended beyond equities, as bitcoin slid to its lowest level since November 2024 after falling below the $80,000 mark over the weekend for the first time since last April.
Still, several areas of the market showed resilience. Walmart rose about 3%, pushing its market capitalization above $1 trillion following strong momentum in its digital business and customer growth. PepsiCo climbed nearly 5% after posting solid earnings driven by improving organic sales. Bank stocks, including JPMorgan and Citigroup, also traded higher.
Precious metals rebounded sharply, helping improve sentiment. Spot gold rose 6% and spot silver gained 7%, recovering from steep losses last week that had raised concerns about a broader risk-off shift among retail traders.
Investors are now digesting earnings from more than 100 S&P 500 companies this week. Alongside Alphabet, another “Magnificent Seven” heavyweight, Amazon, is scheduled to report results later in the week.
Frequently Asked Questions
Why did the S&P 500 and Nasdaq fall today?
Markets declined as investors sold technology stocks and rotated into sectors tied more closely to economic growth, pressuring the Nasdaq in particular.
Why did tech stocks underperform the broader market?
Heavy selling in major tech names followed earnings reactions and ongoing weakness in software stocks, with investors locking in profits after strong rallies earlier in the year.
What caused the Dow to fall despite hitting a record earlier?
The Dow initially rose on strength in defensive and value stocks but later reversed as broader market sentiment weakened.
Why did Nvidia and other “Magnificent Seven” stocks drop?
Nvidia and other mega-cap tech names fell due to earnings-related pressure, valuation concerns, and continued rotation away from high-growth stocks.
Which sectors or assets showed strength despite the selloff?
Consumer staples, banks, and precious metals performed better, with gains in Walmart, PepsiCo, JPMorgan, Citigroup, and a rebound in gold and silver prices.
