Midday movers: Nvidia and Apple fall as investors flee megacap tech
Investing.com -- U.S. stock futures declined Thursday despite the release of key inflation data that surprised to the downside, bolstering hopes the Fed will cut interest rates in September. Following the data investors flocked into small cap stocks, spurning heavily weighted megacap names like NVIDIA (NASDAQ: NVDA) and Apple (NASDAQ: AAPL), triggering a decline in major averages.
Here are some of the biggest U.S. stock movers today:
PepsiCo (NASDAQ: PEP) stock fell 0.1% after the soft drinks giant released disappointing second-quarter revenue, hit by declining demand in North America for its beverages and snacks.
Delta Air Lines (NYSE: DAL) stock slumped 6% after the carrier forecast lower profits in the current quarter than expected, citing discounting pressure in the low end of the market. Delta peers American Airlines (NASDAQ: AAL) and United Airlines (NASDAQ: UAL) were also lower.
Pfizer (NYSE: PFE) stock rose 0.5% after the drugs giant announced that it was advancing the development of its key anti-obesity drug, a likely profitable market.
- Apple (NASDAQ: AAPL) stock fell 2.75% as investors pulled money from megacap tech stocks. NVIDIA plunged 5%, and Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) were lower by 3% each.
Alcoa (NYSE: AA) stock rose 2% after the aluminum giant disclosed positive second-quarter results, helped by higher alumina and aluminum prices.
Costco (NASDAQ: COST) stock fell 3% despite news that the warehouse retailer announced plans to increase annual membership fees for the first time since 2017.
WD-40 Company (NASDAQ: WDFC) stock surged 4% after the household products firm reported higher-than-expected earnings and revenue in the third quarter.
Spotify (NYSE: SPOT) stock fell 2.5% despite Jefferies assuming coverage of the music streaming service with a ‘buy’ rating, saying it is increasingly confident in its ability to “comfortably deliver sustainable 15%+ rev growth over the next 3 years.”
Quantumscape (NYSE: QS) stock soared 28% after German auto giant Volkswagen (ETR:VOWG_p) said it will massively ramp up production of solid-state batteries developed with U.S. startup.
Rocket Companies (NYSE: RKT), D. R. Horton (NYSE: DHI), Zillow Group (NASDAQ: ZG) and other real-estate-related stocks gained following better than expected inflation data.
Tesla (NASDAQ: TSLA) declined 4% after Bloomberg reported that it plans to delay its robotaxi unveiling to October from August.
Additional reporting by Louis Juricic