Headline: US Stocks Rebound From Lows as Small Caps Outperform; Payments Giants Slip
Wall Street trimmed early losses on Tuesday, with the S&P 500 rebounding from its weakest level since mid-October. While the broader market stabilized after a nearly 100-point intraday swing, pressure persisted across several blue chips and mega-cap technology names ahead of a key earnings report from Nvidia.
By midday, the S&P 500 was modestly lower, recovering most of the morning selloff as traders weighed a mix of catalysts: Alphabet’s unveiling of Gemini 3 drew upbeat initial reactions, Meta notched a legal win tied to Instagram and WhatsApp, and comments signaled that China remains on schedule for U.S. agricultural purchases. Even so, sentiment stayed cautious into Nvidia’s results, with the chipmaker’s shares paring losses to about 1.2% while holding their November low.
Market breadth improved, led by a positive turn in the Russell 2000 that hinted at rotation away from the mega-cap cohort and toward small caps and cyclicals. Among notable movers, Amazon fell 3.6%, Microsoft 2.9%, and UnitedHealth 2.5%. Home Depot slid 4.6% following its earnings update. In payments, Visa declined 1.6% and Mastercard 1.8%, reflecting broader softness in large-cap financials even as risk appetite broadened beneath the surface.
Key Points: – S&P 500 cut early losses after a near 100-point intraday rebound, though the index remained slightly lower on the day. – Alphabet’s Gemini 3 launch, Meta’s legal victory, and updates on China’s U.S. farm purchases supported the turnaround. – Nvidia reports tomorrow; its shares eased about 1.2% while holding November support. – Mega-cap weakness persisted: AMZN -3.6%, MSFT -2.9%, UNH -2.5%, HD -4.6% post-earnings. – Payments leaders V -1.6% and MA -1.8% slipped alongside broader large-cap pressure. – Russell 2000 moved into positive territory, signaling rotation from mega-cap tech toward small caps.
