S&P 500 and Nasdaq Slide as Tech Stocks Decline; Dow Ends Relatively Flat After Reaching Record High

Biggest S&P 500 Movers on Tuesday

Decliners

Palantir Technologies (PLTR)
Shares of Palantir Technologies took a significant hit, dropping over 9% on Tuesday. This marked the fifth consecutive day of losses for the analytics software provider, which only a week ago was riding high after a strong earnings report. The downturn was fueled by concerns voiced by high-profile short-seller Andrew Left from Citron Research, who raised alarms about the stock’s valuation, suggesting it has strayed far from the company’s fundamental performance.

Coinbase Global (COIN)
In the wake of a broader decline in cryptocurrency prices, shares of Coinbase Global, the largest U.S. cryptocurrency exchange, also fell, sliding 5.8%. This follows a trend observed over the past week, indicating that the volatility in the cryptocurrency market is negatively impacting associated equities.

Oracle (ORCL)
Enterprise software giant Oracle experienced a parallel fate with its shares also down 5.8%. Amid reports of a corporate reorganization and job cuts within its cloud infrastructure division, Oracle is refocusing its strategy towards artificial intelligence. According to reports, long-serving Chief Security Officer Mary Ann Davidson will step down from her position, adding to the speculation surrounding the company’s future direction.

Advancers

Intel (INTC)
In contrast, shares of Intel surged nearly 7%, making it the top performer in the S&P 500 on Tuesday. This uptick was primarily driven by an announcement from Japan’s SoftBank Group regarding a strategic $2 billion investment. SoftBank’s CEO, Masayoshi Son, expressed optimism about the future of U.S. semiconductor manufacturing and indicated that this investment reflects a belief in Intel’s potential.

Prologis (PLD)
Another notable mover was Prologis, a real estate investment trust (REIT) focused on industrial properties. Its stock price jumped 5% following an upgrade by analysts at Mizuho, who raised their rating to "outperform." The upgrade was attributed to a favorable outlook for the industrial REIT subsector, particularly in light of potential interest rate cuts expected in the near future.

Palo Alto Networks (PANW)
Palo Alto Networks saw its shares rise over 3% driven by strong quarterly earnings that surpassed analysts’ expectations. The company’s outlook for fiscal 2026 also exceeded consensus forecasts, reflecting an effective implementation of its strategic initiatives in the cybersecurity space. Analysts noted this performance indicates a growing demand for comprehensive cybersecurity solutions.

Goldman Weighs in on ‘Summer of Stablecoins’

With the introduction of the GENIUS Act, a landmark federal regulation for stablecoins, Goldman Sachs recently shared its insights on this burgeoning market. The $270 billion stablecoin sector is under scrutiny as experts debate whether it could eventually overshadow traditional financial systems.

While stablecoins are designed to modernize financial transactions through blockchain technology, Goldman analysts predict that the true disruption will be limited to backend infrastructures like interbank payments and cross-border transactions. They anticipate consumer payment services will remain largely unchanged, highlighting the role of traditional giants like Visa and Mastercard in facilitating stablecoin transactions rather than competing with them.

The report also projects significant growth, particularly for compliant stablecoins like Circle’s USDC, which they believe could expand by $77 billion, or 40% annually from 2024 to 2027. In contrast, Tether’s USDT remains the largest stablecoin, but Goldman is bullish on alternatives that meet regulatory standards.

Robinhood Expands Trading to Include Game Outcomes

In an intriguing move, Robinhood Markets has introduced the ability for users to trade on the outcomes of professional and college football games, a decision that illustrates their ambition to expand beyond traditional trading avenues. The company emphasizes that this feature remains distinct from conventional sports betting, branding it as “event contracts.”

Customers can bet on a variety of matchups, including all NFL games and those involving major college programs. Robinhood’s VP & GM of Futures expressed that this addition aligns with the platform’s vision of being a comprehensive space for varied investment needs.

Unlike standard sports betting, Robinhood’s event contracts allow for real-time price adjustments and risk management, catering to a growing audience of sports fans eager for enhanced engagement during games.

Apple to Shift iPhone 17 Production to India

In a significant pivot stemming from its ongoing efforts to diversify production, Apple is reportedly planning to manufacture all four models of its iPhone 17 in India. This is a historic first, representing a deeper commitment to the country’s manufacturing capabilities.

According to reports, the tech giant will operate five factories in India, expanding its footprint as it seeks to lessen reliance on China amid geopolitical tensions and tariffs. Despite facing hurdles, such as a 25% additional levy on Russian oil imports, Apple’s consumer electronics imports remain exempt from new tariffs in the U.S., making this move strategically crucial.

Palantir Plunges Amid Valuation Concerns

Palantir’s stock has been in freefall recently, driven by skepticism regarding its high valuation. The stock is reportedly down 9%, yet it remains one of the best-performing stocks within the S&P 500 for the year. Amidst unfair valuations and potential detachment from fundamentals, analysts have begun issuing warnings about the risks of investing in Palantir, suggesting that while the stock has had a stellar run, its future growth may be overvalued.

Short seller Andrew Left’s commentary has intensified scrutiny of Palantir’s stock, leading to increased market volatility around the company’s prospects.

Nvidia Aims to Expand Product Offerings for the Chinese Market

Nvidia has expressed intentions to broaden its product range for the Chinese market, building upon the recent approvals granted by U.S. authorities for sales expansion in the country. The company is eyeing the introduction of a new AI chip, tentatively named the B30A, which is based on its advanced Blackwell architecture.

While the move aims to reinforce Nvidia’s competitive stance in China, it raises concerns regarding regulatory compliance and the firm’s future strategies in an ever-evolving market landscape. Nvidia remains committed to ensuring that its offerings align with necessary government approvals.

Powell’s Upcoming Speech May Impact Markets

As Federal Reserve Chair Jerome Powell prepares to speak at the Jackson Hole summit, market analysts anticipate that his comments could have significant implications. There’s speculation that Powell may signal an upcoming policy adjustment, potentially leaning toward a 25 basis-point rate cut.

The hints from Powell have led analysts to warn about a possible market pullback, suggesting that investor optimism could be tempered if the anticipated tone diverges from their expectations.

Viking Therapeutics Faces Stock Plunge Over Weight-Loss Pill Study

Viking Therapeutics shares experienced a drastic drop of 42% after revealing unfavorable results from a clinical trial on its experimental weight-loss pill. While the study indicated that participants lost a significant amount of weight, the high discontinuation rate associated with adverse gastrointestinal effects raised red flags.

The company’s CEO acknowledged these concerns but expressed hope for future refinements in dosing that might mitigate side effects as they plan further investigations.

Best Buy Launches a U.S. Digital Marketplace

Best Buy is stepping into the digital marketplace arena, significantly expanding its online offerings by doubling the number of products available on its platform. This includes various categories such as stylish merchandise and seasonal decorations.

The marketplace initiative reflects a growing trend among retailers to expand product ranges without the need for additional inventory investment. Despite facing challenges in the current economic landscape—including tariffs—Best Buy’s strategy signifies an adaptive approach to modern retailing dynamics.

Palo Alto Networks’ Stock Soars with Positive Earnings

Palo Alto Networks shares jumped on the back of solid quarterly earnings that exceeded expectations, showcasing strong demand for its cybersecurity solutions. The company reported impressive year-over-year revenue growth, which can be attributed to the increasing urgency for comprehensive cyber defenses among businesses.

The forward-looking statements from Palo Alto indicate continued optimism in the cybersecurity sector as they prepare to meet growing demand amidst rising threats.

Home Depot Affirms Optimistic Outlook, Boosting Shares

Home Depot shares rose after the company confidently reaffirmed its sales guidance amid increasing demand for home improvement projects. The retailer reported steady sales growth while maintaining a positive outlook for comparable store sales. Despite some mixed results earlier this year, the company’s commitment to enhancing customer engagement is evident in its performance metrics.

Intel Rallies on SoftBank Investment Announcement

Intel shares surged following a pivotal announcement regarding a $2 billion strategic investment from Japan’s SoftBank Group. This investment not only promises to bolster Intel’s financial standing but also reinforces confidence in its long-term growth potential within the semiconductor sector. As market dynamics continue to evolve, the implications of this partnership could significantly enhance Intel’s trajectory moving forward.