Stocks Drop Before US Holiday – US Market Wrap

A selloff in giant technology companies dragged down stocks, while the latest economic data gave support to the Federal Reserve’s cautious stance on rate cuts.

Equities halted a seven-day rally that drove the S&P 500 to all-time highs. A gauge of the Magnificent Seven megacaps slid about 1%. Dell Technologies and HP tumbled at least 11% after their results disappointed investors. The US Federal Trade Commission has opened an antitrust investigation of Microsoft, drilling into everything from the company’s cloud computing and software licensing businesses to cybersecurity offerings and artificial intelligence products.

In a thin trading session ahead of the Thanksgiving holiday, data showed the Fed’s preferred measure of underlying inflation picked up. While in-line with estimates, the core personal consumption expenditures climbed 2.8% from October last year. Separate figures showed the economy expanded at a solid pace.

The S&P 500 dropped 0.4%. The Nasdaq 100 slid 0.9%. The Dow Jones Industrial Average fell 0.3%. Treasury 10-year yields declined six basis points to 4.25% slipped. Bitcoin rallied.