US Market Close: Tech Selloff, Energy Rally, and Bitcoin Plunge

Market Performance and Sector Rotation

• 📉 The S&P 500 closed down approximately 0.9%, and the Nasdaq 100 slid 1.6%, marking a significant selloff from near-record highs.
• 💡 A rotation out of information technology stocks, which underperformed by over 2%, was evident, despite strength in individual names like Palantir.
• 🚀 Conversely, the energy sector surged by more than 3%, driven by rising crude prices and geopolitical tensions.
• 📈 The Russell 2000 managed to close positive, up 0.3%, indicating a broader market participation beyond large-cap tech.

Key Company Performances and Outlooks

• 🎯 Palantir Technologies was a notable gainer, up 6.8%, following a strong revenue forecast for fiscal 2026 that significantly exceeded expectations.
• 🏥 Amgen reported fourth-quarter adjusted EPS of $5.29, beating estimates, with strong performance from its top drugs.
• 🍎 Skyworks, a supplier to Apple, reported fiscal first-quarter earnings that missed year-over-year comparisons, with revenue down 3%.
• 🛒 Walmart achieved a $1 trillion market cap for the first time, with its stock up 3% for the day and 14% year-to-date, attributed to its digital transformation and AI integration.

Notable Declines and Sector Challenges

• 💸 PayPal shares fell sharply after announcing HP Inc. CEO Enrique Lores will take over as CEO, replacing Alex Chriss.
• 💉 Novo Nordisk saw its shares drop over 14% due to an expected sales decline this year for its blockbuster drugs Ozempic and Wegovy, facing increased competition and potential US government drug price cuts.
• 🏠 Homebuilders showed strength, with the S&P 500 homebuilding index up 2.5%, driven by discussions around private investment in affordable housing initiatives.

Cryptocurrency and Geopolitical Influences

• 📉 Bitcoin experienced a significant plunge, falling over 7% at one point and hitting its lowest price since President Trump's election victory in November 2024.
• 💥 Geopolitical risks, including the US Navy shooting down an Iranian drone, contributed to a jump in oil prices and supported the energy sector's rally.
• 🥇 Gold bounced back after a historic rout, indicating a flight to safety amid market volatility and geopolitical concerns.