S&P 500 ends near flat as energy, defensive sectors counter megacap declines

economictimes.indiatimes.com:

defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell.Megacap technology-related growth stocks dipped, with Alphabet down 1.9% and Tesla falling 1.7%, as investors fretted that interest rates could stay higher for longer. The tech-heavy Nasdaq posted the biggest weekly decline of the three major indices, losing 2.6%. With no major catalysts driving markets, focus has shifted to Powell's speech at the Jackson Hole economic symposium next Friday for clues on the interest rate outlook as well as earnings from chip designer Nvidia on Wednesday.

The S&P 500 lost 0.65 points, or 0.01%, to 4,369.71 and the Nasdaq Composite dropped 26.16 points, or 0.2%, to 13,290.78. The Dow Jones Industrial Average rose 25.83 points, or 0.07%, to 34,500.66 points. The CBOE volatility index hit its highest in nearly three months, reflecting rising investor anxiety.

Nvidia's shares fell 0.1%, but still notched a weekly gain. Nvidia has had a spectacular rally on expected growth in artificial intelligence, nearly tripling in value year to date. Defensive sectors such as consumer staples and utilities rose, with gains in firms such as retailer Walmart helping the Dow Jones Industrial Average.

The S&P 500 energy index rose 0.9%, with Exxon Mobil among leading gainers, up 1.5%. Among major movers of the day, Estee Lauder tumbled 3.3% after the cosmetics maker forecast its annual net sales and profit below Street estimates. The Nasdaq has fallen 7.2% in the past three weeks, its deepest three-week drop since late December.