The S&P 500 slipped 0.17% on August 14 as weak consumer data broke the index's recent run toward record highs. Broadcom shares fell 6% amid scrutiny of its AI financing, while Reddit jumped 13% on news it will join the S&P 500 next week.
Consumer data stalls the rally
The S&P 500 fell 0.17% to 7,785.76 as disappointing economic data stalled the recent rally. The Nasdaq Composite lost 0.28% to 26,729.16, and the Dow Jones Industrial Average slipped 0.20% to 53,732.41.
Traders reacted to a drop in consumer confidence and a slowdown in consumer spending. July retail sales fell 0.6% month-on-month, stirring concern about consumer health despite a strong corporate earnings season.
Energy and basic materials finished as the top-performing sectors, while drops in technology and healthcare stocks weighed on the indexes. Gold rose 0.24% to $4,373.48. The 10-year Treasury yield fell 0.05% to 4.69%.
Broadcom slides on AI financing scrutiny
Broadcom tumbled 6% after Bank of America analysts questioned a potential $370 billion debt financing vehicle. Applied Materials also faced selling pressure despite an earnings beat.
A Goldman Sachs note said hyperscalers are using lease commitments and other debt structures to fund AI expansion, and investors are taking note. The scrutiny extends beyond the scale of AI spending itself to how firms finance their build-outs.
Reddit gains on index inclusion, bond yields climb
Reddit shares jumped 13% after the company said it will join the S&P 500 next week. Meanwhile, the U.S. government sold 30-year bonds at a 5.216% interest rate, the highest level in 25 years — reflecting investor concern over inflation, rising energy prices, and the growing national deficit.
Source: The Motley Fool
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