The S&P 500 drops 1% as Meta suffers a blow from its spending push – US Market Wrap

Wall Street slowed a stock rise, sending Meta down 11% on doubts about the viability of significant artificial-intelligence spending. Bond rates and the dollar surged as the Federal Reserve restrained rate-cutting expectations.

A selloff in numerous Megacaps drove down the S&P 500, which had risen $17 trillion since its April lows. While the United States and China reached a trade truce, the agreement was widely expected. Meanwhile, equities produced a “Hindenburg Omen,” a technical indication that occurs when a bifurcated market loses momentum despite weak breadth.

During a busy corporate week, Meta sold $30 billion in bonds with record demand. Microsoft fell on disappointing results. Alphabet surged following a revenue beat. Nvidia fell after President Donald Trump stated he did not discuss authorising sales of Blackwell chips to China with his counterpart, President Xi

Apple reported excellent worldwide sales late Wednesday, but revenue in China fell short of expectations. Amazon’s cloud unit experienced strong growth. Netflix has approved a 10-for-l stock split.

The S&P 500 index lost 1%. The yield on 10-year Treasuries increased one basis point to 4.09%. The dollar reached a three-month high. Bitcoin plummeted.