Wall Street Today: S&P 500 Eases From Record Levels as AMAT, SPCX, INTC and AVGO Fall

The S&P 500 pulled back Friday from record-high levels as weakness for Applied Materials, SpaceX, Broadcom, Intel and other Big Techs outweighed gains for Applied Optoelectronics, Nebius, Sandisk, AMD and different tech stocks that rose.

The $S&P 500 Index (.SPX.US)$ shed 13.23 points (0.2%) to a 7,785.76 finish just one day after the blue-chip index set all-time closing and intraday highs.

The $Nasdaq Composite Index (.IXIC.US)$ likewise gave up 73.86 ticks (0.3%) to 26,729.17, while the $Dow Jones Industrial Average (.DJI.US)$ lost 107.58 points (0.2%) to 53,732.41.

Macro

The three indices fell as select tech stocks eased following recent earnings results or forward guidance that disappointed investors.

For instance, $Applied Materials (AMAT.US)$ ended 5.1% lower even though its Q2 earnings and revenues beat expectations. The stock reportedly fell because investors were looking for even stronger forward guidance than what management offered.

Similarly, $Cerebras Systems (CBRS.US)$ and $Cisco (CSCO.US)$ sank 5.3% and 1.6%, respectively, in a second session of losses following poorly received quarterly results. Cerebras had already lost 11.9% on Thursday, while Cisco had given up 1.1%.

Other tech stocks to fall on Friday included $Broadcom (AVGO.US)$ – which sank 5.9% on several negative catalysts, including word that Abu Dhabi's sovereign-wealth fund had exited the name.

Additional tech decliners heading into the close included $Oracle (ORCL.US)$ (down 3.7%), $Palantir (PLTR.US)$ (2.8% lower), $Intel (INTC.US)$ (off 2%) and $SpaceX (SPCX.US)$ (0.9% weaker).

That more than offset gains for select other Big Techs led by $Applied Optoelectronics (AAOI.US)$, which bounced 15.5% from Thursday's 5.8% selloff.

$SanDisk (SNDK.US)$ also rose another 7.4% after soaring 13.7% on Thursday on well-received long-term revenue guidance.

Other techs to rise on Friday included $NEBIUS (NBIS.US)$ (up 8.8%), $Advanced Micro Devices (AMD.US)$ (6.5% stronger), $Lumentum (LITE.US)$ (5.2% better), $Micron Technology (MU.US)$ (which added 2.3%) and $SK hynix (SKHY.US)$ (which inched up 0.4%).

Moo-vers

The "Magnificent Seven" stocks followed the broad market's lead and ended Friday's session mostly lower.

Mag-7 decliners included $Amazon (AMZN.US)$ (down 0.94%), $Meta Platforms (META.US)$ (0.86% lower), $Microsoft (MSFT.US)$ (off 0.3%), $Alphabet-A (GOOGL.US)$ (0.13% weaker) and $NVIDIA (NVDA.US)$ (which lost 0.06%).

Only two Mag-7 names rose: $Tesla (TSLA.US)$ (up 0.7%) and $Apple (AAPL.US)$ (0.2% firmer).

Elsewhere on Wall Street, Friday's noteworthy percentage losers included:

-- $Circle (CRCL.US)$, down 5%. The stablecoin firm snapped an eight-session streak of rising or closing unchanged. It had gained more than 30% between a $57.84 session low on Aug. 3 and its $75.38 close on Thursday.

-- $Workday (WDAY.US)$, 3.8% lower. The enterprise-software firm consolidated on Friday after soaring 17.8% – its best one-day gain ever – after Reuters report that private-equity firm Silver Lake is in talks to acquire the company.

Meanwhile, Friday's significant percentage gainers included:

-- $Unusual Machines (UMAC.US)$, 25% firmer. The military-drone firm rose after the White House announced plans Thursday to impose up to 100% tariffs on foreign-made military-grade drones from China and other countries. U.S. President Donald Trump's son is a major UMAC investor.

-- $Reddit (RDDT.US)$, 12.6% better. The social-media giant rallied on word late Thursday that it will join the $S&P 500 Index (.SPX.US)$ before next Tuesday's opening bell. Stocks often rise on inclusion in the index because S&P 500-based ETFs and mutual funds typically buy shares of new entrants.

-- $Ondas (ONDS.US)$, 3.6% higher. The military-drone firm gained ground on a combination of the White House tariff news and a partial rebound from Thursday's 8.8% loss on poorly received quarterly results.

Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.

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