US stocks slide after recording biggest midday moves

On Wednesday, US stocks experienced a decline due to a shift away from technology stocks that negatively impacted the Nasdaq. Additionally, profit-taking ahead of key economic and policy events next week caused the S&P 500 to slide. The Dow Jones Industrial Average surged 71.82 points, or 0.21%, to 33,645.1, the S&P 500 lost 11.76 points, or 0.27%, at 4,272.09 and the Nasdaq Composite dropped 123.83 points, or 0.93%, to 13,152.59.

The Bank of Canada’s decision to raise interest rates contributed to market apprehension around the Fed’s next interest rate decision. The S&P 500 posted 19 new highs and no new lows; the Nasdaq Composite recorded 114 new highs and 30 new lows.

Investors continued to move away from megacap and growth stocks after their recent run, resulting in a jump of 1.60% for the small-cap index Russell 2000 and a fall of 0.62% for the S&P 500 Growth index. Energy index surged by 2.62% after oil prices edged higher, while the KBW Regional Banking Index hit a two-month high.

US inflation data is expected to show consumer prices eased slightly in May on a month-over-month basis but with elevated core prices. Weighing on stocks, the two-year US Treasury yield and benchmark 10-year yield climbed after the Bank of Canada raised interest rates, adding to market apprehension around the Fed’s next interest rate decision.

US shares have recently been boosted by a megacap stocks rally and a stronger-than-expected earnings season, with the S&P 500 up almost 20% from its October 2022 lows. However, some analysts expect profit-taking soon in big tech and other major growth stocks.

The CBOE Volatility Index hit the lowest since February. Wells Fargo raised the price target on Netflix (NFLX.O) shares to $500 from $400, the highest on Wall Street, according to Refinitiv. The streaming company advanced 0.73%. Energy index surged 2.62% after oil prices edged higher, while the KBW Regional Banking Index hit a 2-month high.

Yext Inc soared 39.58% after the New York-based online marketing firm raised its annual earnings forecast. Campbell Soup fell 7.90% after the packaged food maker posted a lower fiscal third-quarter gross margin, dented by high commodity and freight costs. \

Coinbase shares surged 3.08% after hitting a seven-month low on Tuesday as the Securities and Exchange Commission sued the largest US crypto exchange, accusing it of operating illegally, without having first registered with regulator. Cathie Wood’s Ark Invest bought 419,324 shares of Coinbase on Tuesday. Affirm Shares of the payments company surged 6% after Affirm and Amazon announced a new compatibility feature.

Tesla shares added 1.5% after the electric vehicle maker posted an update on its website that showed new Model 3 and Model Y cars are eligible for a $7,500 tax credit from the Inflation Reduction Act.

Advancing issues outnumbered decliners on the NYSE by a 1.76-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored advancers.