Alphabet Tumbles 6%
Alphabet Inc. tumbles 6% after Nobel laureate John Jumper announced he was leaving Google DeepMind for AI startup Anthropic, while SpaceX sinks 10% on a $20 billion bond sale
A renewed slide in AI hyperscalers pulled Wall Street’s biggest benchmarks lower at midday Monday.
The S&P 500 and Nasdaq 100 are swinging into the red even as the Dow Jones and small caps pushed higher .
U.S.-Iran talks over the Strait of Hormuz sent oil prices sliding, amid lingering bets that a hawkish Federal Reserve could still raise interest rates this year.
West Texas Intermediate crude sank about 4.8% to roughly $73.64 a barrel, almost fully erasing its Iran-war premium.
Across U.S. equity markets by midday Monday, the action was sharply split.
The S&P 500 slipped about 0.4% to 7,474, and the Dow Jones Industrial Average bucked the trend with a gain of roughly 0.3%, or about 171 points, to 51,736.
The Nasdaq 100 fell about 0.6% to 30,238 as the megacap complex cracked.
Within Magnificent Seven stocks, Alphabet Inc. (NASDAQ: GOOGL ) tumbled more than 6% after Nobel laureate John Jumper announced he was leaving Google DeepMind for AI startup Anthropic.
Amazon.com Inc. (NASDAQ: AMZN ) dropped about 4.5% and Meta Platforms Inc. (NASDAQ: META ) and Microsoft Corp. (NASDAQ: MSFT ) each fell around 2.6%, as investors fretted over soaring AI capital spending.
Shares of Space Exploration Technologies Corp. (NASDAQ: SPCX ) slid 10% following a new bond offering of $20 billion.
The stock has now fallen 26% since its high last week.
Monday’s Performance In Major US Indices Index Last % Change S&P 500 7,474.56 -0.3% Dow Jones 51,745.62 +0.4% Nasdaq 100 30,245.57 -0.5% Russell 2000 2,996.10 +0.5% Updated by 12:10 PM ET According to the Benzinga Pro platform: The Vanguard S&P 500 ETF (NYSE: VOO ) slipped 0.4%.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA ) rose 0.4%.
The Invesco QQQ Trust (NASDAQ: QQQ ) fell 0.5%.
The iShares Russell 2000 ETF (NYSE: IWM ) gained 0.5%.
Communications Sink, Getty Images Climb On OpenAI Deal The best-performing corner of the market was the Health Care Select Sector SPDR Fund (NYSE: XLV ) , up about 0.7%, followed by the Industrials Select Sector SPDR Fund (NYSE: XLI ) at roughly 0.5% and the Financial Select Sector SPDR Fund (NYSE: XLF ) at about 0.4%, the latter firming as climbing yields lifted lenders.
The clear laggard was the Communication Services Select Sector SPDR Fund (NYSE: XLC ) , down about 2.7% under the weight of Alphabet’s slide, with the Consumer Discretionary Select Sector SPDR Fund (NYSE: XLY ) off roughly 1.5%. Semiconductors stayed firmly bid, with the VanEck Semiconductor ETF (NASDAQ: SMH ) up 0.5%.
Super Micro Computer Inc. (NASDAQ: SMCI ) jumped about 15% and ON Semiconductor Corp. (NASDAQ: ON ) rose about 7.8%, both riding the broad semiconductor rally AbbVie Inc . (NYSE: ABBV ) climbed about 7% after agreeing to buy Apogee Therapeutics in a $10.9 billion cash deal, Rocket Lab Corp . (NASDAQ: RKLB ) dropped about 8.3% and AST SpaceMobile Inc. (NASDAQ: ASTS ) fell about 8.0%, in sympathy with SpaceX.
The standout move belonged to Getty Images Holdings Inc. (NYSE: GETY ) , which more than doubled, soaring about 119% after announcing a partnership with OpenAI.
Read Also: Fed Rate Hikes Are Coming, Bank Of America Warns In Shocking Hawkish Call Monday’s Russell 1000 Top Gainers Name % change Super Micro Computer, Inc. +15.0% ON Semiconductor Corporation +7.8% AbbVie Inc. +6.9% Figure Technology Solutions, Inc. (NASDAQ: FIGR ) +6.4% Skyworks Solutions Inc. (NASDAQ: SWKS ) +6.3% Monday’s Russell 1000 Top Losers Name % change Roblox Corporation (NYSE: RBLX ) -9.8% ZoomInfo Technologies Inc. (NASDAQ: GTM ) -9.4% Rocket Lab Corporation -8.3% AST SpaceMobile, Inc. -8.0% Rivian Automotive, Inc. (NASDAQ: RIVN ) -7.8% Image: Shutterstock