Stock Market Today, Aug. 14: Rally Stalls on Disappointing Consumer Data, Broadcom Falls 6% | The Motley Fool
TheS&P 500(^GSPC-0. 17%)fell 0. 17% to 7,786, theNasdaqComposite(^IXIC-0. 28%)lost 0. 28% to 26,729, and theDow JonesIndustrial Average(^DJI-0. 20%)slipped 0. 20% to 53,732 as disappointing economic data. . .
TheS&P 500(^GSPC-0. 17%)fell 0. 17% to 7,786, theNasdaqComposite(^IXIC-0. 28%)lost 0. 28% to 26,729, and theDow JonesIndustrial Average(^DJI-0. 20%)slipped 0. 20% to 53,732 as disappointing economic data stalled the recent rally. IndexS&P 500 IndexToday's Change(-0. 17%)-13. 23Index Level7,785. 76Gold prices rose 0. 24% to $4,373. 48 as of U. S. market close, and the 10-Year Treasury yield fell 0. 05% to 4. 69%. Energyand basic materials finished as the top-performing sectors, but drops in technology and healthcare stocks weighed on indexes. Today's biggest movesRedditshares jumped 13% following news that the social media company will join the S&P 500 next week. Broadcomtumbled 6% afterBank of Americaanalysts questioned a potential $370 billion debt financing vehicle. Applied Materialsalso faced selling pressure despite an earnings beat. What this means for investorsMarkets retreated from record highs today as traders reacted to a drop in consumer confidence and a slowdown in consumer spending. July retail sales were down 0. 6% month-on-month, sparking concerns about consumer health and economic growth despite a strong corporate earnings season. The dip in Broadcom stock reflects an emerging theme: In addition to questioning the magnitude ofartificial intelligence (AI)spending, the way firms finance their AI build-outs is also under scrutiny. A recent note fromGoldman Sachs(GS-0. 31%)says hyperscalers are using lease commitments and other debt structures to fund expansion. Investors are taking note. Meanwhile, borrowing rates are in focus after the U. S. government just sold 30-year bonds at a 5. 216% interest rate -- the highest it's been in 25 years. The rate reflects investor concern about inflation, rising energy prices, and the growing national deficit. Bank of America is an advertising partner of Motley Fool Money. Emma Newberyhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Broadcom, Goldman Sachs Group, and Reddit. The Motley Fool has adisclosure policy.