S&P 500 dips as traders ditch high-flying stocks and go bargain hunting |
The start of the third quarter was marked by a vibe shift: an intense rotation from the market's winners into value stocks. Alas, since value stocks often get that title from underperformance that makes them smaller members of a benchmark, this shift in allocations saw the S&P 500 end 0.1% lower despite advancers outnumbering decliners by 255. Until today, the S&P 500 hadn't declined during a session in which this many of its constituents rose in all of 2025. The Nasdaq 100 fell 0.9% while the Russell 2000 rose 0.9%. Top performers in the S&P 500 included casino stocks Las Vegas Sands, Wynn Resorts, and MGM, which were all up over 7% on the back of strong June Macao gaming numbers. On the flip side, GE Vernova and Axon Enterprise fell 4.3% and 6.3%, respectively, leading the day's declines. |
- Target shares rose 5% as bullish call option activity surged as part of a broader factor rotation where traders are pivoting from high-flyers to beaten-down names.
- Ford and GM jumped 4.7% and 5.7%, respectively, after both posted solid Q2 vehicle sales. Ford's sales rose over 14%, while GM's climbed more than 7%.
- Tesla slipped 5% after President Trump threatened to have "DOGE take a good, hard look" at EV-friendly government subsidies — a critical part of Elon Musk's business.
- AI trade names like Meta, Palantir, and Cloudflare, along with chipmakers Nvidia, AMD, and Broadcom, all declined in this factor rotation, also weighed down by Senate Republicans scrapping a bill provision that would've banned state-level AI regulation.
- AMC sank 9% after the movie theater chain and meme-stock favorite struck a debt-for-equity swap and settled litigation with creditors.
- Rivian shares dipped 1.9% while Lucid's fell 3.7% as the Senate worked to advance a version of Trump's "big, beautiful bill" that would slash a number of EV benefits and charger network budgets.
- Warner Bros. Discovery dropped over 4% after the Newhouse family — longtime media moguls and Condé Nast owners — sold $1.1 billion worth of shares.
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— Luke Kawa, Markets Editor & Nia Warfield, Markets Writer |
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Modelo maker Constellation Brands misses earnings estimates |
The company reiterated that stress among Hispanic consumers is weighing on its sales. Read more. |
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There's only one Wall Street analyst with a sell rating on Nvidia — what's his thesis? |
The poster child of the AI boom is nearing a $4 trillion market cap, and most Wall Street analysts still think there's room for more upside. Except one.
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Tariffs are creating massive challenges for some US small businesses. Case in point, after receiving a surprise tariff bill, the CEO Keely Electronics, a guitar pedal company, footed the expense with 1.83 million American Express rewards points. Read more. |
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- Ives: Renewed Musk-Trump beef "remains an overhang on Tesla's stock"
After Musk criticized his "big, beautiful bill" again, President Trump has threatened to sic DOGE on its former leader.
- Renewed Musk-Trump feud brings dogecoin, $TRUMP down
The meme coins dipped as the men fought online. - The end of one the most prolific flops in pro sports
In the last 32 years, there's never been a collection of four offensively productive players who performed this well in the regular season, played together for so long, and achieved less when it matters the most. - Tesla sales fall for sixth straight month in Denmark and Sweden, rise in Norway
Europe has been an especially sore spot for Tesla. - Lululemon is suing Costco for selling bargain dupes of its luxury athleisure
The activewear giant, famed for its $100+ yoga pants, has struggled with slowing demand and rising competition for some time. Now, it's facing tariffs and affordable knockoffs. - CEO Elon Musk takes over Tesla's US and European sales amid executive departure
Billionaires — they're just like us, wearing many hats.
- Could Cloudflare's "pay per crawl" save news from AI?
The novel plan would let publishers control AI bot access and collect micropayments to access content. - Senate kills proposed 10-year ban on state AI regulations
The late night amendment passed 99-1, removing a provision from the tax bill that would have prevented any state from regulating the fast-moving AI industry for a decade.
- The first half of the year is over and Tesla's "more affordable models" are nowhere to be seen
Tesla repeatedly promised to "new vehicles, including more affordable models" would be in production in the first half of 2025.
- TD Cowen downgraded Sweetgreen from "buy" to "hold" and set its price target at $15
The pricey salad company is down more than 50% this year.
- Wolfspeed surges over 100% as the embattled chipmaker files for bankruptcy
The company says it aims to cut 70% of its debt while keeping operations running as usual.
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