S&P 500 Falls 1% as Meta Gets Hit on Spending Push: Markets Wrap

Wall Street pumped the brakes on a stock rally as concerns over whether massive artificial-intelligence spending will pay off sent Meta Platforms Inc. down 11%. Bond yields and the dollar rose as the Federal Reserve tempered rate-cut expectations.

A selloff in several megacaps dragged down the S&P 500, following a $17 trillion surge from its April lows. While the US and China agreed on a trade truce, the deal was seen as mostly priced in. Meantime, equities triggered a “Hindenburg Omen” - a technical indicator that occurs when a bifurcated market loses momentum amid lackluster breadth.