Stock Rotation Hits Megacaps as Apple Falls 3%: Markets Wrap
As Wall Street gears up for this week’s Federal Reserve decision, traders are rotating out of tech megacaps, which have led the recent stock bull market, and into more economically sensitive sectors. Apple Inc. shares dropped over 3% after a prominent analyst warned of weaker-than-expected demand for the iPhone 16 Pro. This weighed down the S&P 500, despite most companies in the index posting gains. The S&P 500 fell 0.1%, largely due to the performance of big tech, while its equal-weighted version, which gives smaller firms like Target Corp. equal clout to giants like Microsoft Corp., hovered near an all-time high.
Tech megacaps, including Apple and Microsoft, have powered much of the market’s rally over the past two years. However, since the S&P 500’s July peak, the so-called “Magnificent Seven” tech giants have collectively fallen over 6%, while other industries gain traction.
Market Overview:
- S&P 500: -0.1%
- Nasdaq 100: -0.8%
- Dow Jones Industrial Average: +0.3%
- “Magnificent Seven” megacaps: -1.1%
- Russell 2000 (small firms): +0.2%
Corporate Highlights:
- Intel Corp.:(INTC) Qualifies for up to $3.5 billion in federal grants to produce semiconductors for the Pentagon.
- Boeing Co.:(BA) Announces cost-cutting measures in preparation for a potential long-term strike at its main hub.
- Charles Schwab Corp.:(SCHW) Reports revenue recovery after a dip earlier this year.
- Deutsche Bank AG:(DB) Evaluating options to hinder UniCredit SpA’s potential acquisition of Commerzbank AG, which could create a significant competitor in Germany.
