S&P 500 and Nasdaq 100 fall from record highs as investors take profits on chipmaker; Energy sector recovers, yields rise: what drives the markets on Thursday?

After the June holiday season, Wall Street reopened on a cautious note as the S&P 500 and Nasdaq 100 indexes fell after hitting record highs around midday trading in New York. This decline was caused by profit-taking on shares of chip manufacturers and rising government bond yields, which dampened risk sentiment.

The iShares Semiconductor ETF (NASDAQ:SOXX) fell 2.4%, marking its worst session since May 1, after hitting technically ‘overbought’ levels earlier this week.

Oil prices rose above $81 per barrel and were aiming for the highest closing price since late April. This was fueled by the bigger-than-expected drop in US inventories last week, which fueled a rally in oil-related companies.

Small caps also weakened, while blue chips rebounded, with the Dow Jones Industrial Average outperforming other major indices with a 0.4% gain.

Long-term government bond yields rose, with the 10-year yield rising 5 basis points to 4.27%, following mixed economic data released earlier in the day. Unemployment claims rose slightly more than expected last week, and a gauge of manufacturing activity in the Philadelphia region fell short of expectations, hitting its lowest level in five months.

In addition, housing data showed a sharp decline in both home starts and building permits, rekindling concerns about a tight real estate market.

Bonds fell, with the iShares 20+ year government bond ETF (NASDAQ:TLT) fell 0.9%. The US dollar index (DXY) rose 0.4%, with the dollar gaining ground against all major currencies.

As expected, the Bank of England kept its policy rate unchanged at 5.25%, while the Swiss National Bank cut the interest rate by 0.25 percentage point to 1.25%. As a result, the British pound and Swiss franc fell by 0.5% and 0.8% respectively against the dollar.

Gold, followed by the SPDR Gold Trust (NYSE:GLD), rose 1.1%, while Bitcoin (CRYPTO: BTC) remained just below $65,000.

Monday’s performance in the major US indices and ETFs

Updated at 12:55 PM ET

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.3% to $547.24.

• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.4% to $390.90.

• The tech heavy Invesco QQQ Trust (ARCA: QQQ) fell 0.6% to $482.43.

• Sectorally speaking, the Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 1.8%, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged behind, down 0.9%.

The story continues

Monday’s stock movers

• The largest company in the world Nvidia Corp. witnessed a decline of 2% while Qualcomm Inc. (NASDAQ:QCOM), Micron Technology Inc. (NASDAQ:MU) and Wolfspeed Inc. (NASDAQ:WOLF) were all down more than 5%.

• Advanced Micro Devices Inc. (NASDAQ:AMD) rose nearly 4%, outperforming all other chipmakers. This increase followed the announcement that Sun Singapore SystemsSingapore’s largest parking solutions provider, has selected AMD to power its AI-based parking management platform.

• Solar-related stocks saw sharp declines after JPMorgan cut its price targets Enphase Energy Inc. (NASDAQ:ENPH) from $128 to $124 and up SolarEdge Technologies Inc. (NASDAQ:SEDG) from $73 to $59.

• Gilead Sciences Inc. (NASDAQ:GILD) rose more than 8% after the company announced that a biennial antiviral injection successfully prevented HIV in all subjects in a trial involving thousands of women and girls in South Africa and Uganda.

• Accenture plc (NYSE:ACN) rose more than 6% despite missing revenue and earnings expectations last quarter.

• Other stocks reacted to corporate earnings The Kroger Company (NYSE:KR), down 2.8%, Darden Restaurants Inc. (NYSE:DRI), down 1.5%, Jabil Inc. (NYSE:JBL), down 8.7% and Commercial Metal Company (NYSE:CMC), up 5%.

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Illustration created using artificial intelligence via MidJourney.

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This article S&P 500 and Nasdaq 100 fall from record highs as investors take profits on chipmakers; Energy sector recovers, yields rise: what drives the markets on Thursday? originally appeared on Benzinga.com

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