Just How Bad is the Current Sell-Off?

The S&P 500's 2.7% declne on Monday was its biggest one-day drop since December. The index has notched only two worse days in the current bull market, which began in late 2022: 澳洲幸运5官方开奖结果体彩网:December 18, 2024, when the Federal Reserve 澳洲幸运5官方开奖结果体彩网:scaled back its rate cut forecast, and 澳洲幸运5官方开奖结果体彩网:August 5, 2024, when the 澳洲幸运5官方开奖结果体彩网:unwinding of a po🐟🏅pular leveraged trade briefly sank U.S. equities. 

The last six days have been particularly punishing. The S&P 500 fell nearly 1.8% last Monday when President Trump confirmed a 25% tariff on Canadian and Mexican imports would go into effect the following day. In the five days since, stocks have fallen another 4% despite Trump again 澳洲幸运5官方开奖结果体彩网:partially delaying those tariffs. The S&P 500's 5.7% decline between last Monday and today stands as the index's worst 6-day 𝐆stretch since September 2022. 

It’s been 340 trading days since the S&P 500 last corrected, an abnormally long time. According to research from LPL Financial, since 1929, the average time between S&P 500 澳洲幸运5官方开奖结果体彩网:corrections has been about 173 days.

Monday's sell-off brought the S&P 500 closer to a correction than any other pullback in the last year. Stocks fell about 8.4% from peak to trough during their August slump, and they retreated about 4% during their December pullback. With Monday’s losses, the S&P 500 has fallen 8.6% off its all-time high from three weeks ago.

The recent slump, however, has been a much swifter decline than the last correction, which played out over three months🎉, from July 31 to October 27, 2023. The S&P 500 fell 10.3% in that time.🔜 It was, however, a short-lived correction; the index rebounded on October 30, the next trading day, and resumed its bull run. 

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

These Were the Big S&P 500 Movers on Monday

Decliners

• Tesla (TSLA) stock plummeted 15.4%, posting the steepest drop of any S&P 500 constituent. On Monday, UBS analysts reduced their price target on Tesla stock, pointing to lower delivery expectations amid signs of softening demand for the company's Model 3 and Model Y vehicles. In addition, Tesla reportedly saw a sharp year-over-year decline in February vehicle shipments in China, the world's largest electric vehicle (EV) market. Tesla shares have lost 40% of their value over the past month, suggesting a 澳洲幸运5官方开奖结果体彩网:potential backlash to the political interventions of CEO Elon Musk.

• Shares of Microchip Technology (MCHP), a manufacturer of microcontrollers and other semiconductor products, slid 10.6%. Last week, the chipmaker announced restructuring plans that included laying off around 2,000 employees as it navigates slumping demand, especially in the automotive end market. Between severance payments and other costs, Microchip anticipates restructuring expenses of between $30 million and $40 million.
• Concerns about a potential economic downturn also weighed on other high-flying stocks in the tech sector. Shares of big data analytics software firm Palantir Technologies (PLTR), last year's top-performing S&P 500 stock, 澳洲幸运5官方开奖结果体彩网:dropped 11%, extending a string of recent losses. Beyond the uptick in economic uncertainty, discussions of defense spending cuts and sales by company insiders have contributed to the pressure on Palantir stock.

Advancers

• Regeneron Pharmaceuticals (REGN) shares jumped 5.3%, gaining the most of any S&P 500 stock on Monday. The uptick came after the biotechnology company reported positive results from a clinical trial of its product Dupixent for treating bullous pemphigoid, a rare autoimmune skin disorder. Regeneron developed Dupixent, which is already indicated for other skin conditions, through a global collaboration with French pharmaceutical firm Sanofi (SNY).
  
• Shares of Virginia-based utility company AES Corp. (AES) advanced 4.7% following several positive mentions in financial media including CNBC's "Mad Money." The show's host, Jim Cramer, highlighted AES stock for its strong dividend yield.
• Fellow power generator NextEra Energy (NEE) received a boost after its top executive struck an optimistic tone about future power demand. According to Reuters, CEO John Ketchum said the company anticipates power demand to surge 55% in the next 20 years compared to the past two decades, with around 17% of the growth attributed to the expected artificial intelligence boom. NextEra shares ended 4.6% higher on Monday.

澳洲幸运5官方开奖结果体彩网:-Michael Bromberg

Delta Sinks as Airline Cuts Outlook on Uncertain Travel Demand

Shares of Delta Air Lines dropped in extended trading hours Monday after the airline cut its sales and profit guidance for the first quarter, citing economic "uncertainty" that has hit demand for U.S. travel.

Delta (DAL)🥃, in an evening regulatory filing, said revenue wou꧋ld increase 3% to 4% and earnings per share would be 30 cents to 50 cents. Those numbers were down from a range of 7% to 9% and 70 cents to $1, respectively.

"The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand," the company's filling read. CEO Ed Bastian cited weakness in both corporate and consumer spending in a Monday appearance on CNBC.

"Consumers, in a discretionary business, do not like uncertainty," Bastian said.

Delta's stock was down 12% in recent after-hour trading. The stock slid more than 5% in the regular session as consumer discretionary names were hit by growing concerns among investors about the economic outlook.

The com🐓pany announced the numꩲbers ahead of an investor conference scheduled for Tuesday morning.

-澳洲幸运5官方开奖结果体彩网:David Marino-Nachison

Mag 7 Stocks Have Worst Day Since July

The꧅ Magnificent Seven stocks on Mo🎀nday had their worst session of the year as equities sold off amid rising recession risks. 

The Roundhill Magnificent Seven ETF (MAGS) fell 5.2% on Monday, its biggest one-day decline since July 24. Th🌜e ETF is still up 21% over the past 12 months, though it's down 20% from its record closing high in mid-December.

Tesla (TSLA) led the 澳洲幸运5官方开奖结果体彩网:Mag Seven lower, dropping 15.4% on Monday. Shares soared in the aftermath of President Trump’s victory in early November as investors bet the carmaker would benefit from CEO Elon Musk’s proximity to the president. But the stock has come under pressure since Trump’s inauguration, 澳洲幸运5官方开奖结果体彩网:battered by tariffs, an increasingly gloomy economic outlook, and possibly 澳洲幸运5官方开奖结果体彩网:consumer backlash to Musk’s political activity. With Monday’s losses, the stock has 澳洲幸运5官方开奖结果体彩网:erased its post-election gains. 

Nvidia (NVDA) shares shed about 5% on Monday. Nvidia stock has slumped in recent weeks as sales and earnings growth 澳洲幸运5官方开奖结果体彩网:have moderated from their breakneck pace of the last two years. Investors are also increasingly concerned that high-profile 澳洲幸运5官方开奖结果体彩网:AI successes in China ꧂could prompt the government to tighten export restrictions on advanced semiconductors ꦇand other AI hardware, a headwind to Nvidia’s sales. 

Shares of Apple (AAPL), Alphabet (GOOG), and Meta Platforms (META) were each down more than 4%, while Microsoft (MSFT) slid more than 3% and Amazon (AMZN) lost more than 2%. 

Smaller tech stocks that soared last year on AI enthusiasm also hit hard on Monday. Shares of AI plays Palantir (PLTR) and Applovin (APP) fell 10% and 12%, respectively. Nuclear power providers Vistra (VST) and Constellation Energy (CEG), whichꦍ got a boost last year from surging dema𒀰nd for low-carbon electricity from AI data centers, declined about 5%.

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

Could Wobbly Consumer Sentiment Undercut Economy?

Consumer spending has supported the economy's recovery from the pandemic, but worries about cost increases may erode optimism.

In February, consumers anticipated inflation would worsen over the next 12 months, projecting an increase of a tenth of a percentage point to 3.1%, according to the New York Federal Reserve's survey of consumers.

It’s the latest signal that consumers are beginning to feel worse about the economy. Various measures of 澳洲幸运5官方开奖结果体彩网:consumer sentiment have declined as President Donald Trump has moved to 澳洲幸运5官方开奖结果体彩网:implement tariffs—which could be a problem for the economy.

“The deterioration in confidence could very well lead businesses to pare or at least delay investments and new hires, consumers to delay purchases, and for financial risk assets, such as equities, to decline or increase in volatility," wrote Nationwide Chief Economist Kathy Bostjancic.

Consumer spending makes up about 70% of 澳洲幸运5官方开奖结果体彩网:gross domestic product (GDP), a measure of the economy's growth. Shoppers have helped support the economy 澳洲幸运5官方开奖结果体彩网:through inflation spikes and 澳洲幸运5官方开奖结果体彩网:subsequent interest rate hikes, as shoppers 澳洲幸运5官方开奖结果体彩网:kept up their momentum through 澳洲幸运5官方开奖结果体彩网:most of 2024. 

Data indicate some consumers were already 澳洲幸运5官方开奖结果体彩网:watching their wallets before Trump implemented tariffs. If consumer surveys prove true and everyday Americans are concerned about the future of the economy, they could cut back on spending and, in turn, slow economic grow🦩th.

BMO Capital Markets Chief Economist Douglas Porter wrote that GDP in the first quarter could dip to 1% because of tariff talk. That's significantly lower than the 2.3% in the fourth quarter of last year.

“Part of the negative impact on economic activity stems from the drop in business, consumer and investor confidence, ♐as the consensus view was that tariffs would be used as a threat and negotiating tool instead of being implemented,” Bostjancic said

-澳洲幸运5官方开奖结果体彩网:Terry Lane

Palantir Shares Slide Again, Down 40% from Record High

Palantir (PLTR) shares plummeted again Monday, extending a sharp de🥃cline that has taken place since the stock hit an all-time high last month.

The analytics software company’s stoc𝓰kౠ was down 11% in late trading and was among the leading decliners on the S&P 500. Shares have lost nearly 40% over their value since recording an all-time closing high on Feb. 18.

However, Goldman Sachs analysts said late last week that they expect Palantir could be among the fastest-growing companies in terms of AI-enabled  revenue over the next two years. Despite the recent market pullback, “we expect continued technological progress and earnings growth will eventually lead investors to 🦹reengage wit🍰h AI-exposed stocks,” the analysts said. 

Also last week, William Blair analysts suggested Palantir could be uniquely positioned to 澳洲幸运5官方开奖结果体彩网:support efforts to trim government spending directed by the Trump administration's 澳洲幸运5官方开奖结果体彩网:Department of Government Efficie﷽ncy. The analysꦜts said they expect Palantir’s AI offerings to be "platforms of choice” for feder🔯al agencies creating centralized payment tracking systems.

Even after its recent run of losses, Palantir's stock price has almost tripled in value over the past 12 months. The stock is roughly flat since the start of 2025.

-澳洲幸运5官方开奖结果体彩网:Andrew Kessel

Apple Delay of AI Siri Features Could Dent iPhone Sales

Apple’s (AAPL) decision to 澳洲幸运5官方开奖结果体彩网:delay the rollout of certain AI-driven Siri features could hold back🐈 iPhone sales, analysts at Citi said Monday.

A more powerful Siri with “on-screen awareness, personal context and deep app integration” could💫 have been a driver of iPhone sales this year if it had come out this spring, the analysts said.

 However, Apple said Friday it expects the updates to its voice assistant to be released later, sometime “in the coming year.” As a result, Citi now projects iPhone sales to grow 2% to 232 millioꦅn units in 2025, down from 5%.

Still, the analysts kept their “buy” rating and $275 price target for Apple's stock, above the consensus target of $255 compiled by Visible Alpha. They pointed in part to “progress in rolling out Apple Intelligence in China,” where it has so far been unavailable. Apple has touted Apple Intelligence as a driver of 澳洲幸运5官方开奖结果体彩网:record iPhone upgrades, with the new iPhone 16 perfo💃rming better in markets where the service is available. 

Apple shares slid nearly 6% to about $225 in late trading Monday amid a widespread 澳洲幸运5官方开奖结果体彩网:market selloff. Even with its re🔯cent selloff, the stock has added close to a third of its value over the past 12 mo🍨nths, far outpacing the performance of the S&P 500 over the period.

-澳洲幸运5官方开奖结果体彩网:Andrew Kessel

Consumer Staples Could Continue to Attract Investors

Investors who have lately turned t🍌o consumer staples as a defense against volatility may do so for a 🎀while, UBS analysts said.

The  (XLP), which tracks staples companies, has outperformed the S&P 500 since late February, rising more than 5% over the 🗹past month as t𝐆he broader index fell. XLP includes businesses that manufacture and sell food, beverages and other household goods, which can appeal to investors seeking to hedge against uncertainty.

A “flight to safety” isn’t surprising, UBS analysts said, despite concerns that strong revenue in the sector may no longer be a given. Spending trends have moderated in recent weeks, which could be a reaction to poor weather and other temporꦉary dynamics—or a sign of “things to come,” the analysts wrote Monday.

That said, other trends—including some lower commodity prices and a 澳洲幸运5官方开奖结果体彩网:weakening dollar—may shore up bottom✃ lines, the analysts wr꧅ote in another recent note. 

Investor enthusiasm for the sector is unlikely to wane "with many now believing that as long as volatility/uncertainty persists in the market, there will be greater interest in Staples irrespective of fundamentals," UBS analysts wrote Friday.

Staples stocks were among few S&P 500 sectors gaining on Monday amid the broader, tech-led sell-off. The Archer-Daniels-Midland Company (ADM), which sells ingredients for human and pet food, was up 3% in recent trading; Brown Forman (BF.B), the company behind Jack Daniel’s, added 2%; and McCormick & Co. (MKC), known for spices and sauces, rose 2%.

-澳洲幸运5官方开奖结果体彩网:Sarina Trangle

What Analysts Think of Oracle Ahead of Earnings Late Monday

Oracle (ORCL) is set to report fiscal third-quarter results after the market closes today with analysts watching for revenue growth and possible commentary on the company's 澳洲幸运5官方开奖结果体彩网:Stargate joint venture.

Of the 14 analysts covering the stock tracked by Visible Alpha, eight have “buy” or equivalent ratings, with six giving the stock a “hold” rating. Their consensus price target is near $194, representing an upside of more than 30% from the stock's current level.

Oracle shares were down 5% in recent trading am꧑id the broader tech-led sell-off for U.S. equities on Monday.

The cloud services giant is expected to report fiscal first-quarter revenue of $14.37 billion, up around 8% yearও-over-year. Adjusted earnings are expected to land at $4.29 billion, or $1.49 per share, up from $3.98 billion, or $1.41 p💎er share, a year earlier.

UBS analysts said they will be watching for commentary on Stargate, Oracle's joint venture with OpenAI and SoftBank. Information on the up to $500 billion 澳洲幸运5官方开奖结果体彩网:artificial intelligence infrastructure project "has the potential to outweigh everything else" from💜 Oracle's earnings call, the analysts said. UBS maintained a "buy" rating and $210 price target.

"Sentiment has been incrementally more positive post the [Jan. 21] Stargate announcement," Jefferies analysts said recently, reiterating a price target of $220.

Shares o﷽f Oraಞcle are down this year but up about 30% over the past 12 months.

-澳洲幸运5官方开奖结果体彩网:Andrew Kessel

Tesla Shares Down 50% From December Record High

Tesla (TSLA) shares plummeted on Monday and have given up more than half their value since hitting an all-time high in mid-ജDecember.

With today's decline, the stock is below its closing level on Election Day (Nov. 5). Tesla shares soared in the wake of Donald Trump's election as investors placed bets that CEO Elon Musk's close relationship with the president would benefit the EV maker.

Since Trump took office in January and Musk started working in the 澳洲幸运5官方🌳开奖结果体彩网:cost-cutting Department of Government Efficiency, shares have tumbled. They have been pressured by weak fourth-quarter 澳洲幸运5官方开奖结果体彩网:deliveries and earnings, uncertainty around 澳洲幸运5官方开奖结果体彩网:Trump's tariffs, and declining 澳洲幸运5官方开奖结果体彩网:sales in China and 澳洲幸运5官方开奖结果体彩网:registꩲrations in Europe to start the year. Increasingly, investors have wondered whether Musk's DOGE involvement could 澳洲幸运5官方开奖结果体彩网:hurt Tesla's brand and sales going forward.

Analysts remain divided on the stock, with the 19 brokers tracked by Visible Alpha split between 10 "buy," five "hold," and four "sell" ratings.

UBS analysts on Monday maintained their "sell" rating and lowered their price target to $225 from $259, and cut their estimates for first-quarter deliveries to 367,000 from 437,000 previously. They said the new Model Y and a yet-to-be-announced lower cost model will likely help sales, but see demand for the new Model Y as "somewhat muted" so far, and expect a lower-cost vehicle to come with a lower margin.

Tesla shares recently were down 12% at around $232. The stock is down 52% froꦅm its all-time closing high of $479.86, set on Dec. 17.

Tesla stock is down 43% so far in 2025, making it the biggest decliner among the Magnificent Seven group of major tech companies.

-澳洲幸运5官方开奖结果体彩网:Aaron McDade

DexCom Drops as Diabetes Device Maker Gets FDA Warning

Shares of DexCom (DXCM) sank Monday morning after the maker of glucose monitoring devices reported it haಌd received a warning letter from federal regulators over the condition of tw🐠o of its manufacturing plants.

The company said the letter from the 澳洲幸运5官方开奖结果体彩网:Food and Drug Administration (FDA) noted "deficiencies in the response" from DexCom to the FDA's Form 483, which outli🦄nes observations from investigators.

The company noted the FDA held inspections of its San Diego, Calif., and Mesa, Ariz., facilities last year, which found "non-conformities in manufacturing processes and quality management system."

DexCom said that it has "already submitted several responses to the Form 483 and is in the process of preparing a written response to the warning letter." It added that it plans "to continue to undertake certain corrections and corrective actions," although cannot guarantee the FDA will be satisfied with the response by the deadline regulators have set.

The company pointed out that its operations are not being affe💯cted and it sees no material impact from the warning letter.🌼

DexCom shares were down 7% recently and have lost about 45% of tꦰheir value over the past year൩.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Novo Nordisk Drops on Latest Weight-Loss Drug Study

Novo Nordisk's (NVO) U.S.-listed shares fell Monday morning following the release of data for a new 澳洲幸运5官方开奖结果体彩网:phase 3 clinical trial of its in-development weight los🍌s drug CagriSema.

In ⛦the second phase 3 study for the combination drug, the average weight loss among the roughly 1,200 patients in the study who took CagriSema ꦏwas 15.7% of their body weight after 68 weeks, compared to 3.1% for those taking a placebo.

The study from the maker of Ozempic and Wegovy follows the first Phase 3 trial 澳洲幸运5官方开奖结果体彩网:results for CagriSema in December that saw patients lose 22.7% of their body weight. Shares sank 17% following that study, as Bloomberg had reported ahead of the results that Novo Nor🍸disk was aiming for a 25% weight 🌸loss with the new drug.

Novo Nordisk still �♔�has two more Phase 3 trials scheduled for CagriSema, and said Monday it still expects to submit the drug for regulatory approval in the first quarter of 2026.

Shares of the Danish drugmaker were down 9% in recent trading. While shares had risen recently following other 澳洲幸运5官方开奖结果体彩网:trial results and 澳洲幸运5官方开奖结果体彩网:solid sales of its current weight loss drugs, they are down 40% over the pa♒st 12 months.

-澳洲幸运5官方开奖结果体彩网:Aaron McDade

Redfin Stock Soars on Deal with Rocket Companies

Redfin (RDFN) shares soared in early trading Monday after mortgage giant Rocket Companies (RKT) announced 𒈔it was buyin🥃g the digital real estate brokerage in an all-stock deal valued at $1.75 billion.

Rocket said the transaction values Redfin shares at $12.50 each and "connects Redfin's nearly 50 million monthly visitors to Rocket's mortgage products."

Redfin shares were up 74% at $10.15 in the opening minutes of today's session. Shares of the Detroit-based Rocket were down 11%.

Rocket said it "expects the combined company to achieve more than $200 million in run-rate synergies by 2027," and that the deal is expected to be accretive to its adjusted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) by the 💝end of 2026. Once the transaction closes, current Rocket shareholders will control 95% of the combined firm, while Redfin shareholders will own the rest. 

"Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers," Rocket Companies CEO Varun Krishna said.

Entering Monday, Rocket Companies shares had added nearly a quarter of their value over the past 12 months, while Redfin stock had lost about 18% of its value in that span.

-澳洲幸运5官方开奖结果体彩网:Nisha Gopalan

Major Indexes Have Given Back Their Post-Election Gains

The post-ele🐻ction gains that U.S. stocks registered have𒅌 evaporated during the recent slump.

Stocks hit a series of record highs in the weeks that followed the presidential election amid optimism surrounding President Trump's pro-business agenda, amid expectations for higher levels of investment, lower taxes and a reduction in regulatory barriers. In recent weeks, however, concerns about Trump's plans for tariffs—and the on-again, off-again nature of the announcements—have roiled markets.

The S&P 500 is down more than 6% from its record high set on Feb. 19 and൩ has lost ground in each of the last three weeks. The Nasdaq is down nearly 10% from♏ its record high set in mid-December. Both of the indexes last week dropped below the levels they were at on the Nov. 5 election day.

The Dow Jones Industrial Average enters Monday's session 1.4% above its close on election day, though futures indicate that the blue-chip index will fall to about that level this morning.

So far in 2025, the Dow is up less than 1%, while the S&P 500 has lost 1.9% and the Nasdaq is down 5.8%.

Major Stock Index Futures Slide

Futures tied to the D🌳ow Jones Industrial Average were down 1%.

S&P 500 futures fell 1.2%.

Nasdaq 100 futures were off 1.4%.