Nvidia, Alphabet, Microsoft, Drag S&P, Nasdaq Lower | Wall Street Today

Google parent $Alphabet-A(GOOGL.US)$, $Microsoft(MSFT.US)$ and Nvidia led the slump in Magnificent Seven stocks, dragging down the S&P 500 and the Nasdaq amid mounting speculation big money is moving from this year's biggest gainers to unloved equities.

The $S&P 500 Index(.SPX.US)$ slipped 0.5% to close Thursday at 5,399.22, while the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ declined 0.9% to 17,181.72. The $Dow Jones Industrial Average(.DJI.US)$ backed the trend, gaining 0.2% to 39,935.07, highlighting the divergence between previously high flying mega-caps and the rest of the stock market.

The $U.S. 2-Year Treasury Notes Yield(US2Y.BD)$ rose to as high as 4.451% from 4.437 in the previous session, before dipping to 4.435%. The $U.S. 10-Year Treasury Notes Yield(US10Y.BD)$ also closed lower after swinging between 4.196% to 4.292%.

$Ford Motor(F.US)$ was the second-worst performer on the S&P 500, posting its steepest decline since 2008, after the company's earnings missed analysts' estimates. After the market closed on Wednesday, the carmaker reported adjusted earnings before interest and taxes fell by about $1 billion to $2.76 billion in the second quarter. That missed the $3.73 billion average of analyst estimates compiled by Bloomberg.

$Edwards Lifesciences(EW.US)$ plunged 31% after the medical-technologies company reported quarterly earnings and guidance that disappointed investors. Mizuho analysts lowered their price target on shares to $85 from $105, pulled back estimates, but maintained an Outperform rating.

$NVIDIA(NVDA.US)$, $Advanced Micro Devices(AMD.US)$, $Arm Holdings(ARM.US)$, $ASML Holding(ASML.US)$ and $Micron Technology(MU.US)$ extended their slump amid mounting concerns that the frenzy of everything related to artificial intelligence is waning and could prompt big money to book their gains and rebalance their portfolio away from the best performers in the first half of 2024.