Traders work on the floor at the New York Stock Exchange on June 24, 2024.
Brendan McDermid | Reuters
The S&P 500 and Nasdaq Composite were little changed on Friday as Wall Street looked toward to end of a week defined by rotation.
The broad S&P 500 and tech-heavy Nasdaq each sat near flat. The Dow Jones Industrial Average lagged, pulling back 183 points, or 0.5%.
Those moves comes after stocks declined across the board on Thursday, with the Dow falling more than 500 points to snap a six-day winning streak. Despite Thursday’s broad sell-off, a market rotation still appears to be theme of the week.
The S&P 500 has dropped more than 1%, on pace for its worst week since April. The Nasdaq has slipped close to 3%, putting a six-week winning streak at risk. On the other hand, the Dow is more than 1% higher, while the small cap-focused Russell 2000 has climbed more than 2% through Thursday’s close.
That divergence has been encouraging to some Wall Street pros who had worried that the market rally was becoming too dependent on a handful of massive tech stocks. A shift away from megacap artificial intelligence beneficiaries can explain the Nasdaq’s underperformance this week, as well as why the information technology and communication services sectors have led the broad S&P 500 lower.
“The headline is ‘these are down’ with some of the momentum stocks getting hit,” said Chis Verrone, head of technical and macro research at Strategas, on CNBC’s “Squawk Box.” But, “the breadth under the surface these last two weeks has been absolutely spectacular.”
Verrone also said the move to small caps “has more durability than the consensus expects.”
CrowdStrike tumbled more than 8% following a major information technology outage that impacted business around the world. The New York Stock Exchange and Nasdaq both said trading did not appear impacted.
