Headline: Tech Slide Hits S&P 500 as Utilities, Select Movers Defy the Drop
A sharp selloff in mega-cap technology shares pulled U.S. equities lower, but investors found pockets of strength across utilities and select stock-specific stories. Rotation signals and valuation gaps came into focus as traders weighed risk management and sector diversification.
The cap-weighted S&P 500 fell 2.7% as tech stocks tumbled 5.6%, while the equal-weighted S&P 500 continued to show relative resilience. With the equal-weighted index trading at a lower price-to-earnings multiple (about 22 versus roughly 30 for the cap-weighted benchmark), some investors see it as a potential hedge against concentration risk in high-valuation leaders. Elsewhere, utilities gained attention as artificial intelligence-driven data center demand accelerates, lifting interest in names such as WEC Energy Group, American Electric Power, Evergy, and Pinnacle West—though rising power and infrastructure costs remain a watchpoint.
Stock-specific moves punctuated the session. Western Digital climbed 6.7% after a new price target of $250, extending a year-to-date gain to 182%, but heightened volatility and stretched valuations warrant caution. Eli Lilly advanced 4.9% on an upgrade to a $1,104 target, underpinned by strong adoption of its obesity treatment portfolio; the stock is up 24.6% this year but remains volatile. Crypto miner Greenidge Generation rallied 37% after its New York permit renewal, as the industry balances emissions goals against potential tax liabilities.
In digital assets, Toncoin saw heavy activity after rejecting resistance around $2.144, with trading volume spiking 89%. Traders are watching support near $2.10 or a potential breakout over $2.154. In biotech, Cogent Biosciences soared 127% on positive Phase 3 cancer drug results, with attention turning to the timing and trajectory of a possible FDA submission.
Key Points: – Tech-led weakness dragged the cap-weighted S&P 500 down 2.7%; equal-weighted S&P showed relative strength with a lower P/E profile. – Western Digital rose 6.7% on a $250 target and is up 182% YTD, amid elevated volatility and valuation risk. – Eli Lilly added 4.9% on a $1,104 target, supported by accelerating obesity drug adoption; shares are up 24.6% YTD. – Greenidge Generation jumped 37% after a New York permit renewal, highlighting regulatory and tax dynamics for crypto miners. – Utilities (WEC, AEP, EVRG, PNW) benefited from surging AI data center power demand, though cost pressures remain in focus. – Toncoin tested key technical levels after an 89% volume spike; Cogent Biosciences surged 127% on successful Phase 3 data.
