Investing.com — The S&P 500 fell for a second straight day Thursday, pressured by wild swings as the tech sector’s recovery faded early in the day amid a continued rotation out of high-flying mega-cap tech stocks ahead of the Netflix (NASDAQ: ) earnings.
At 4:00 PM ET (20:00 GMT), The was down 0.8% and down 0.7% by 533 points or 1.3%. The weakness comes amid a new bout of volatility, with the so-called fear index rising 10% to its highest level since April.
Technology is undoing early gains; Netflix’s guidelines are inadequate
Mega-cap tech stocks, including Apple (NASDAQ:), Google (NASDAQ:), Amazon (NASDAQ:) and Microsoft (NASDAQ:), added to recent losses that have pressured the broader market amid an ongoing rotation out of mega-cap technology, just ahead of Netflix’s win.
However, NVIDIA Corporation (NASDAQ:) bucked the trend of rising 2% as investors appeared to buy the chipmaker’s recent dip despite lingering concerns about a deeper chip ban in the US.
Netflix Inc (NASDAQ:) fell 1% after hours on Thursday after the streaming giant reported third-quarter revenue expectations that missed expectations and overshadowed better-than-expected second-quarter results.
The latest unemployment claims show further signs of a slowing labor market
The number of Americans filing new claims for unemployment benefits rose more than expected last week, rising by 20,000 to a seasonally adjusted 243,000 for the week ended July 13, the Labor Department said Thursday, above the expected 229,000 claims.
Claims were revised lower the week before, but the unemployment rate rose to a 2.5-year high of 4.1% in June.
This suggests the labor market is cooling as Federal Reserve rate hikes in 2022 and 2023 dampen demand.
According to CME’s FedWatch, investors estimate a more than 91% chance of a 25 basis point Fed rate cut by the September meeting.
DR Horton impresses on the bottom line, but Domino’s Pizza misses
Shares of DR Horton (NYSE:) rose 10% after the homebuilder beat quarterly profit expectations, and also approved a new share buyback authorization totaling $4 billion.
Shares of Domino’s Pizza (NYSE:) fell 13% after the pizza chain missed quarterly same-store sales estimates as inflation concerns discouraged U.S. consumers.
United Airlines Holdings Inc (NASDAQ:) fell 1% after third-quarter expectations fell short of Wall Street estimates after unveiling plans to cut capacity despite strong summer travel demand. The airline also reported second-quarter earnings that exceeded expectations.
Warner Bros. Discovery weighs breakup, Beyond Meat under fire
Warner Bros Discovery Inc (NASDAQ:) rose 2% after the Financial Times reported that the company is considering plans to spin off its digital streaming and studio businesses from its legacy TV business to reduce the company’s $39 debt load billion to tackle.
Shares of Beyond Meat (NASDAQ:) fell 10% after a report that the plant-based meat maker has entered into discussions with bondholders to begin talks on restructuring its balance sheet.
(Peter Nurse, Ambar Warrick contributed to this article.)
