S&P 500 Mid-Session: Tech and Banking Stocks Decline, Marvell and Tesla Weigh on Markets

Wall Street Cuts Losses at the Mid-Session on Tariff Reprieve Hopes; Chip Stocks Drag

Wall Street’s main indexes trimmed earlier losses Thursday as traders reacted to a potential softening in U.S. tariff policy. Commerce Secretary Howard Lutnick suggested that the Biden administration could extend a one-month reprieve on import tariffs from Mexico and Canada to all products covered under a free trade agreement. However, uncertainty over the final decision and a widening U.S. trade deficit kept investor sentiment in check. Meanwhile, semiconductor stocks faced a sell-off after Marvell Technology issued an underwhelming forecast.

How Did Major Indexes Perform?

At 15:36 GMT, the Dow Jones Industrial Average fell 123.69 points (-0.29%) to 42,882.90, the S&P 500 dropped 46.15 points (-0.79%) to 5,796.48, and the Nasdaq Composite lost 201.23 points (-1.08%) to 18,352.61. The Russell 2000, tracking smaller U.S. firms, slid 0.6%, extending its 7.5% decline since early November.

Which Sectors Led Declines?

Real estate stocks led sectoral losses, falling 2.62%, followed by consumer discretionary (-2.84%) and technology (-2.48%). Banking stocks dropped 1.6% as rising Treasury yields pressured the sector. Semiconductors were a significant drag on tech, with the Philadelphia Semiconductor Index (.SOX) down over 3%.

Energy (-0.25%) and materials (-0.78%) held up relatively better but still posted losses. Defensive plays such as consumer staples (-0.37%) and utilities (-2.12%) also declined as traders remained cautious.

What Drove the Sell-Off in Chip Stocks?

Marvell Technology fell nearly 18% after reporting modest fourth-quarter beats but failing to deliver an AI-driven growth outlook that investors had anticipated. The company forecasted first-quarter sales in line with expectations, but traders had hoped for stronger momentum.

Other semiconductor stocks followed suit, with Nvidia dropping nearly 5%, ON Semiconductor losing 6%, and Taiwan Semiconductor Manufacturing shedding 3%.

Which Stocks Made Notable Moves?

Beyond semiconductors, Tesla fell 4% after brokerage firm Baird labeled it a “bearish fresh pick.” Amazon dropped over 3%, extending its weekly losses past 5%. Meanwhile, Victoria’s Secret tumbled more than 5% after issuing weaker-than-expected first-quarter revenue guidance.

On the upside, Zscaler climbed nearly 6% after posting a fiscal second-quarter earnings beat. Teladoc gained 4% following an agreement to offer Eli Lilly’s weight-loss drug Zepbound to self-paying patients. BJ’s Wholesale Club and Burlington Stores jumped 13% and 10%, respectively, on stronger-than-expected earnings results.

What’s Next for Markets?

Traders are closely watching Friday’s U.S. payrolls report, which will provide critical insights into the labor market and the Federal Reserve’s potential rate-cut timeline. Weekly jobless claims data showed a sharper-than-expected decline, reinforcing expectations that the Fed may wait until June to begin easing borrowing costs.

Philadelphia Fed President Patrick Harker warned that economic stress could be building, particularly in the consumer sector. Comments from Fed officials Raphael Bostic and Christopher Waller later today could provide further clues on the central bank’s policy stance.

More Information in our Economic Calendar.