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S&P 500 slips as tech melt-up cools

June 7, 2023 3:32 PM EDT

Investing.com -- The S&P 500 slipped Wednesday as the melt-up in tech cooled, offseting gains in energy as investors looked ahead to the Federal Reserve decision slated for next week.


The S&P 500 was down 0.3%, the Dow Jones Industrial Average gained 0.3%, or 108 points lower, the Nasdaq fell 1%.


Alphabet (NASDAQ: GOOGL)fell 3% leading a slide in big tech as investors appeared to take some profit on the sector following gains of more than 30% year to date for the tech sector.


Amazon.com (NASDAQ: AMZN) was also a big drag even as reports suggested the e-commerce is planning to launch ad-supported tier of its Prime Video streaming platform.


Warner Bros Discovery Inc (NASDAQ: WBD) and Paramount (NASDAQ: PARA) climbed 6% and 4% respectively, however, as both firms are reportedly in talks with Amazon to add the ad-based tiers of their streaming services through Amazon’s Prime Video channels.


Affirm Holdings (NASDAQ: AFRM) was also higher on Amazon-related news after announcing that its Adaptive Checkout, would be made available to merchants using Amazon Pay, allowing their customers personalized payment options.


Energy stocks, meanwhile, continued to add to recent gains as oil prices remain supported by Saudi Arabia’s recent decision to cut production and data showing weekly U.S. crude stockpiles unexpectedly dropped.


Marathon Oil Corporation (NYSE: MRO), Halliburton Company (NYSE: HAL), Marathon Petroleum Corp (NYSE: MPC) were among the biggest gainers rising more than 4%.


On the earnings front, Campbell Soup (NYSE: CPB) reported quarterly results that topped Wall Street estimates, but the consumer staples company reaffirmed its guidance that fell short of estimates, sending tis shares more than 8%.


Stitch Fix (NASDAQ: SFIX) rallied 30% after reporting narrower than expected third-quarter losses as cost-cuts helped improve margin.


Some on Wall Street, however, flagged worries about ongoing client losses after the personalized styling service company reported a 20% fall in revenue in the quarter.


“While the company has aggressively adjusted the cost structure in light of the current challenges in the business, the big declines on the top line remain a tough pill to swallow,” Wedbush said in a note.


In crypto-related stocks, Coinbase (NASDAQ: COIN) rose nearly 3% after Ark Invest’s Cathie Wood bought weakness seen a day earlier, when the U.S. Securities and Exchange Commission sued the cryptocurrency platform accusing it of operating as an unregistered exchange.


The wobble in the broader market comes just a week ahead of the Federal Reserve's June 13-14 meeting, when the central bank is widely expected to keep rates unchanged.


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