In the latest trading session, US benchmark equity indexes experienced a decline during intraday trading as specific mega-cap stocks faced notable setbacks. The Nasdaq Composite index slipped by 1.5%, landing at 19,569.1 after midday on Tuesday. Correspondingly, the S&P 500 index decreased by 0.7%, settling at 5,932.8, while the Dow Jones Industrial Average retreated slightly by 0.1% to reach 42,659.1.
Notably, the consumer discretionary sector endured the most significant losses of the day, whereas the energy sector stood out as the leading gainer. Among the high-profile stocks, shares of Nvidia saw a marked decrease of 5%, making it the largest decliner on the Dow and one of the worst performers on the Nasdaq as well.
Furthermore, technology giants Amazon.com, Apple, and Microsoft also featured prominently among the Dow's underperformers. On another front, shares of electric vehicle manufacturer Tesla experienced a 3.9% drop, marking it as one of the steepest declines on the S&P 500 index. In addition, shares of Meta Platforms fell by 1.6%, with the company announcing the end of its third-party fact-checking program in the US.
Instead, Meta is set to introduce a more personalized strategy for handling political content across its platforms, emphasizing its ongoing commitment to 'free expression.' In contrast to these declines, drugmaker Moderna emerged as the best performer on the S&P 500, with its shares soaring nearly 13%.
This was a significant positive amid a market largely downcast by other names. Additionally, Paychex entered into an agreement to acquire Paycor HCM for a substantial $4.1 billion. This strategic move will enable the human resources and payroll solutions provider to enhance its capabilities in the AI space and expand its market reach.
Following the announcement, Paychex shares rose by 2.5%, although Paycor shares declined by 3%. In bond markets, the US 10-year yield experienced a hike of 7.5 basis points, reaching an intraday level of 4.69%. Meanwhile, the yield on the two-year note rose by 2.9 basis points, reaching 4.3%. Regarding recent economic indicators, the US services sector showed signs of accelerated growth, surpassing expectations from the previous month, attributed to a surge in business activities.
According to data from the Institute for Supply Management, the improvement in the services purchasing managers' index was considered encouraging, especially given that numerous other data series have begun to show signs of weakness. Meanwhile, S&P Global reported that the services industry had reached a remarkable 33-month high in its last report.
The job market also appeared more robust, with US job openings climbing to approximately 8.1 million in November, a notable increase from the prior month's figure of 7.84 million. This rise exceeded the consensus estimate of 7.74 million gathered through a Bloomberg survey. In retail developments, online shopping witnessed unprecedented growth during the 2024 holiday season, with mobile devices facilitating the majority of US e-commerce transactions.
Adobe Analytics reported that artificial intelligence technology significantly contributed to increasing click-through rates to retail websites. On the commodities front, West Texas Intermediate crude oil saw a price increase of 1.2%, reaching $74.45 a barrel during intraday trading. Similarly, precious metals also saw favorable movement, with gold prices rising by 0.6% to $2,662.20 per troy ounce and silver reflecting a slight increase of 0.2%, landing at $30.65 per ounce.
In conclusion, while certain mega-cap stocks showed declines, the economic indicators suggested potential growth, reflecting a complex picture of the US financial landscape..