Stocks Halt Record-Breaking Rally as Tech Gets Hit: Markets Wrap
- Fed’s favored inflation gauge rises, backs cautious approach
- US GDP grows at solid 2.8% pace, helped by consumer spending
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A selloff in giant technology companies dragged down stocks, while the latest economic data gave support to the Federal Reserve’s cautious stance on rate cuts.
Equities halted a seven-day rally that drove the S&P 500 to all-time highs. A Bloomberg gauge of the “Magnificent Seven” megacaps slid about 1%. Dell Technologies Inc. and HP Inc. tumbled at least 11% after their results disappointed investors. The US Federal Trade Commission has opened an antitrust investigation of Microsoft Corp., drilling into everything from the company’s cloud computing and software licensing businesses to cybersecurity offerings and artificial intelligence products.