Nasdaq and S&P500: Tech Stocks Slide While Energy and Industrials Drive Gains

Wall Street Higher at Midday as Inflation Data Supports Rate-Cut View

Wall Street indexes leaned higher as we approach the mid-session Friday, with inflation data coming in line with expectations and fueling hopes the Federal Reserve could move closer to rate cuts. Consumer spending rose more than forecast in August while inflation remained contained, supporting growth without forcing tighter policy.

How are the major indexes trading?

The Dow Jones Industrial Average gained 220 points, or 0.6%, to 38,030, lifted by Boeing and bank strength. The S&P 500 added 18 points, or 0.4%, to 5,140, while the Nasdaq Composite slipped 42 points, or 0.2%, to 15,240 as technology underperformed. Market breadth was solid, with advancing issues outnumbering decliners by more than 3 to 1 on the NYSE.

Which sectors are leading?

Energy was the day’s top performer, rising 1.5% with broad-based strength in exploration and services.

Industrials gained 0.7% on aerospace and transport advances, while financials and materials also outperformed.

Utilities added nearly 1% as yields eased.

Health care climbed 0.5%, led by Eli Lilly.

Consumer discretionary edged higher, while communication services and consumer staples hovered near unchanged.

Technology was the lone drag, down 0.4%.

How did industrials trade?

Boeing rose more than 3% after regulators said they would resume certifications for its 737 MAX and 787 jets.

Paccar surged over 5% to top the S&P 500, supported by its domestic-heavy truck production.

Ford advanced nearly 3% as automakers rallied, while Accenture added more than 3%, boosting the broader sector.

What supported energy names?

APA Corp jumped nearly 5%, while Devon Energy and Diamondback Energy each gained more than 3%.

Oilfield service leaders Schlumberger and Halliburton also climbed over 3%.

Rising oil-related demand and firming crude prices gave the sector its strongest showing in weeks.

Which banks drove financials higher?

Goldman Sachs added more than 2%, while JPMorgan rose 1.5%, helping the Dow outperform. Broadly, the financials sector climbed 0.4%, with strength in money-center banks offsetting flat trading in regional lenders. Investors rotated into large-cap financials as easing inflation bolstered the case for steady margins and stronger lending activity.

What about health care and tech movers?

Eli Lilly rose 1.7%, adding weight to the health care sector’s advance. In technology, Intel gained 3% after reports of potential manufacturing partnerships with Taiwan Semiconductor, while GlobalFoundries soared nearly 9% on U.S. policy support headlines. Offsetting those gains, Super Micro Computer fell over 3%, while AMD, Seagate, and Palantir each lost more than 1%.

Which consumer names stood out?

Domino’s Pizza advanced more than 3%, supported by strong retail demand signals, while Paccar’s strength in truck manufacturing also underscored resilient consumer transport trends. Costco, however, slid 2% after its quarterly earnings report disappointed investors.

Market forecast

Inflation data has eased near-term policy worries, but renewed tariffs on trucks, pharmaceuticals, and home goods may complicate the Fed’s outlook.

Energy and industrials remain near-term leaders, while banks show resilience on improved policy clarity.

Technology faces the most pressure from tariffs and supply chain risks.

Traders should watch Treasury yields and upcoming Fed commentary for confirmation of whether rate-cut bets remain intact.

More Information in our Economic Calendar.