Indexes

Records gave way to a broad pullback as a firmer set of activity readings and a fresh jump in oil pushed Treasury yields higher and sent buyers to the sidelines. The selling was widest in the rate-sensitive and economically geared parts of the market.

Sector Heat Map

Just four sectors closed in the green, and the advance was concentrated in energy and the classic defensive corners.

The pattern was a textbook move to defense: energy captured the oil bid while health care, staples and real estate drew the safety flows, and the economically sensitive groups, communication services, financials and discretionary, absorbed the brunt of the selling.

In the News

Drivers

The labor-market crescendo arrives over the next two sessions. Weekly jobless claims land Thursday and the government's May payrolls report follows Friday, the most important number of the month. After today's firm ADP count and hot services prices, a strong payrolls figure would push rate-cut expectations further out and keep the pressure on bonds and richly valued stocks, while a soft one would revive the easing case and could spark a relief bounce.

Broadcom's report will ripple through the chip and AI names at Thursday's open. The beat-and-raise looked strong on paper, yet the muted reaction in late trading raises the question of whether the best news for the semiconductor leaders is now behind the price. Watch whether Nvidia, Marvell and the custom-silicon group steady themselves or whether Wednesday's de-risking extends into another leg lower.

Oil and the Gulf remain the wild card. With crude near $96 and U.S. inventories drawing down for a sixth straight week, any further escalation, particularly a real threat to traffic through the Strait of Hormuz, would compound the inflation and rate problem that weighed on stocks today. A credible step toward de-escalation would work the other way, easing both the oil bid and the math facing the Federal Reserve.

Broad selling pulled SPY back from Tuesday's record as yields and oil climbed.

Texas Pacific Land (TPL): a 9% surge to fresh highs as crude's climb lifted the royalty model.

Western Digital (WDC): a breakout to a new high as storage demand stayed firm against a soft software group.

Broadcom (AVGO): lower into its afternoon report, with the beat-and-raise drawing only a muted late response.

Rates, FX, Commodities

Yields pushed higher across the curve after the data, the dollar firmed, and crude extended its run.

The 2s10s curve flattened a touch to about +40 basis points.

West Texas Intermediate added another 1.7% to $96.37 a barrel as the Gulf strikes and a sixth straight weekly draw on U.S. inventories tightened the picture. Gold slid 1.2% to $4,460 an ounce as higher real yields dulled its appeal, and copper dropped 2.8% on worries that costlier energy and firmer rates could crimp industrial demand.

Technicals

The S&P 500's slip to 7,553.68 left it just above the 7,520 shelf that serves as first support, with its 50-day line down in the low-7,100s and the 200-day further below in the high-6,800s. The Nasdaq Composite gave back the 27,000 mark it had reclaimed earlier in the week, closing at 26,853.98, while the Nasdaq 100 held up better as megacap weakness stayed contained. Yields told the same story up close: the 10-year at 4.49% climbed toward the top of the 4.40%-to-4.60% zone it has traded for weeks, and a push above 4.60% would point to a more hawkish repricing, while the 2-year at 4.09% lifted off the floor it had been testing. The most telling chart was Nvidia, which reversed out of record territory and slid back toward its 20-day average, a clean look at the de-risking that ran through the artificial-intelligence trade. Working the other way, energy and the oil-royalty names broke higher with crude, while storage leader Western Digital cleared resistance to a fresh high.

Nvidia (NVDA), hourly: a steady slide from the open as the AI leaders were sold down ahead of Broadcom's report.

Breakouts & Breakdowns

Breakouts

Western Digital (WDC) — Climbed 5.3% to $594.11, clearing the prior shelf in the high-$560s to a fresh high; with little overhead supply left, that old zone near $565 now stands as the level to defend on a pullback.

Exxon Mobil (XOM) — Rose 1.4% to $152.53, pushing toward the top of its multi-week range as the energy bid built; a sustained move through the low-$150s opens the prior high, with $148 the line bulls now defend.

Breakdowns

Marvell Technology (MRVL) — Fell 5.4% to $301.65, a sharp reversal that handed back much of the prior session's post-earnings surge; losing the $300 round number puts the pre-surge gap toward the $270s back in play.

Netflix (NFLX) — Slid 2.2% to $81.52, dropping back under the shelf it had built over the past two weeks as communication-services names led the decline; a further leg lower brings the low-$79s into view.

Top Movers

Gainers

Dollar Tree (DLTR) rose 1.6% to $112.50 after a first-quarter report that beat and lifted guidance. The discount retailer earned an adjusted $1.74 per share, up 38% from a year earlier and well ahead of the $1.55 consensus, on revenue of $4.98 billion, and raised its full-year profit outlook to a $6.70-to-$7.10 range. On a defensive day the result reinforced that the value shopper is still showing up, a steadying signal for the broader discount-retail group.

Texas Pacific Land (TPL) jumped 9.3% to $406.76, the standout large-cap gainer, as its Permian land-and-royalty model captured the full force of crude's climb. With no drilling costs of its own, the company's royalty stream rises almost dollar-for-dollar with oil, which makes it one of the most direct equity plays on a geopolitical bid in energy. Continued tension in the Gulf would keep the wind at its back.

ConocoPhillips (COP) added 1.5% to $119.05, helped by both firmer oil and a round of bullish analyst commentary that lifted several price targets toward the $128-to-$155 range. Among the biggest independent producers, Conoco offers leverage to the crude move without the refining drag that weighs on the integrated majors. The group's direction from here tracks the path of the conflict.

Walmart (WMT) gained 3.5% to $116.89, leading the Dow as money rotated toward defensive megacaps. The retailer's scale, grocery mix and steady traffic make it a familiar place to hide when growth and rate worries flare, and its strength stood out against a broadly lower market. Staples leadership of this kind often signals a more cautious mood beneath the surface.

Losers

Nvidia (NVDA) fell 3.2% to $214.75, the heaviest single drag on the Nasdaq, as the chip leader reversed out of record territory ahead of Broadcom's afternoon report. After a long run to new highs, investors trimmed exposure into a session of rising yields and a looming reminder that custom silicon is encroaching on the merchant-chip market. How the group trades around that report will set the tone for the AI complex.

ServiceNow (NOW) dropped 6.2% to $117.90, among the worst of the high-multiple software names as the rotation out of growth gathered force. Richly valued software is especially sensitive to rising rates, since so much of its worth sits in distant cash flows, and the firmer yield backdrop hit the group hard. The selling spread across enterprise software, with few names spared.

Palantir (PLTR) slid 5.2% to $142.20 after a fresh bearish call from an analyst who sees steep downside from current levels, layered on top of the broader software retreat. Its premium valuation leaves the stock exposed whenever sentiment toward the AI-application names cools. It has now lagged the market badly this year after leading it in 2025.

Key Macro Data Today

The day's reports leaned firm, and that was the problem for stocks.

Private hiring came in a touch above expectations at 122,000, and the Institute for Supply Management's gauge of service-sector activity accelerated to 54.5, its strongest in months. The reading that mattered most for markets was the prices-paid component at 71.3, near the top of its multi-year range, with every industry surveyed reporting higher input costs. Together the reports pointed to an economy still expanding with inflation that has yet to fully cool, the combination that argues for the Federal Reserve to stay patient, and yields rose in response.

Notable Earnings This Session

Before the bell the docket was light, with the marquee technology results held for the evening.

Pre-Open

Dollar Tree (DLTR) was the main name to report before the open; its beat and raised outlook are covered in Top Movers above. Elsewhere the slate was thin, leaving the day's attention on the data and on what would arrive after the close.

Post-Close

After the close brought the session's headline reports. Broadcom (AVGO) posted record fiscal-second-quarter revenue of $22.2 billion, up 48% from a year earlier, with adjusted earnings of $2.44 per share, and said revenue from artificial-intelligence chips more than doubled to $10.8 billion. Management guided current-quarter revenue to $29.4 billion, above Wall Street's $28.6 billion, with AI revenue seen reaching $16 billion. Even so the shares eased about 3% in late trading, a sign of how much success was already in the price after the stock's long run. CrowdStrike (CRWD) beat handily, with adjusted earnings of $1.10 per share against an $0.88 estimate and revenue up 26%, and announced a four-for-one stock split; the stock still fell roughly 7% after hours in a sell-the-news response. Veeva Systems (VEEV) and C3.ai (AI) also reported, rounding out a heavy evening for enterprise software.

What Drove the Tape

Two forces pulled in the same direction and left stocks lower. Firmer economic data, a better-than-expected ADP hiring count and an ISM services reading that accelerated with input costs near multi-year highs, pushed Treasury yields up and trimmed hopes for near-term rate cuts. At the same time an escalation in the Persian Gulf sent crude past $96 a barrel and added an inflationary jolt the bond market could not ignore. The combination hit the rate-sensitive and economically geared corners hardest, as small caps fell 1.3%, financials and communication-services names led the sector declines, and only energy and the defensive groups closed higher. Beneath the surface the market spent the day lightening up on the artificial-intelligence trade, with Nvidia, Marvell and the software leaders all lower as investors pared risk before Broadcom's report. It was a session where good news on the economy read as bad news for equities.