Stocks churned through midday trading as investors rotated within technology, rewarded some software and retail names, and punished companies delivering weak guidance or operational setbacks. Chipmakers dragged the broader tech complex lower while selected software and consumer staples stocks attracted relative-safe flows; elsewhere, moves were driven by deal activity, earnings beats, and changes to financing outlooks.
Key takeaways
- Semiconductors led the downside: The VanEck Semiconductor ETF headed for a seventh straight losing session, down about 2% as major chip names fell.
- Guidance cuts hit hardest: FMC Corp slumped after trimming third-quarter revenue guidance well below market expectations.
- M&A and upgrades provided support: Software gained on acquisition news for Intuit and selective analyst upgrades for Walmart and Crocs.
- Earnings beats lifted defensives: Kimberly-Clark and Marsh & McLennan gained after reporting results that topped expectations.
- AI and funding concerns weighed on infrastructure plays: CoreWeave and related AI-exposed names fell amid worries about leverage tied to build-outs.
What drove the move
Semiconductors weighed on tech. Chipmakers moved lower, pulling the broader technology sector. Nvidia fell nearly 2%, while Advanced Micro Devices and Marvell Technology dropped more than 3%. The weakness extended to the semiconductor exchange-traded fund, which was down about 2% on the day and was heading toward its eighth consecutive losing session.
Software stocks stood out. Investors leaned into parts of tech viewed as steadier. The iShares Expanded Tech-Software Sector ETF rose about 1%. Salesforce gained almost 4%, while Adobe climbed more than 3%. Oracle rose about 2% as the group outperformed amid the chip selloff.
Company-specific catalysts dominated the rest of the tape. FMC Corp was an outlier on the downside after it dramatically reduced its third-quarter outlook. Intuit rallied after announcing it will acquire Sequence, a revenue management platform. Kimberly-Clark rose on preliminary third-quarter results that topped Wall Street estimates. The RealReal jumped after securing new financing to refinance maturing debt. Marsh & McLennan gained following a quarter where both adjusted earnings and revenue exceeded expectations.
Market reaction across sectors
Consumer staples gained as investors rotated. Shares of consumer staples companies were broadly higher, with investors seeking perceived stability away from the tech selloff. Campbell’s rose about 5%, while General Mills and Conagra Brands gained more than 3% each.
Defensive and deal-driven names also gained. Marsh & McLennan shares advanced about 5% after the insurer reported adjusted earnings of $2.03 per share on revenue of $6.86 billion, above FactSet consensus of $1.97 per share and $6.64 billion. The stock move supported the SPDR Insurance ETF, which rose about 1%.
Energy and chemicals faced a sharp selloff from guidance risk. FMC Corp’s decline was severe—down about 32%—after the company cut its third-quarter revenue guidance to a range between $65 million and $125 million. FactSet’s consensus estimate was $868.5 million. Management said third-quarter demand was weaker than expected, pointing to challenging market conditions and higher-priced FMC products sitting in inventory at certain channel customers, which it said limited product movement and replenishment demand.
AI financing concerns, upgrades, and M&A
AI-exposed infrastructure names fell on leverage worries. CoreWeave dropped for a second day, down about 2%, as investors appeared concerned that CoreWeave and other technology companies may be borrowing too much to fund AI infrastructure build-outs. Related names also slid, including Nebius Group (down about 5%) and Iren (down nearly 8%). Dell Technologies fell about 8%, while data storage company Everpure dropped about 6%.
Rocket Lab moved on a schedule change. Rocket Lab shares fell about 11% after the company delayed the launch of its Neutron rocket to 2027.
Bigger-picture funding and macro sensitivity continued to matter. SK Hynix slid about 2% as concerns lingered about how the company will finance its AI build-out. The move also followed a 7.6% drop in the South Korean Kospi index overnight, suggesting regional risk sentiment weighed on the semiconductor supply chain.
Deal headlines and analyst revisions supported select stocks. Penske Automotive shares jumped about 8% after the company said it would be taken private by Motown Acquisition Corp., an entity owned by Penske Corp. and Mitsui, for $212 per share in cash. The deal represented nearly a 9% premium to Wednesday’s close of $194.79 and is expected to close in the first quarter of 2027. Separately, Walmart rose more than 2% after Deutsche Bank upgraded the stock to buy from hold, citing a positive 2027 outlook, expectations for incremental margin improvement, and the view that current inflation levels could help attract consumers. Crocs gained about 6% after Barclays upgraded the shares to overweight from equal weight, pointing to progress on product innovation, category expansion, and international growth.
What to watch next
With midday moves driven largely by guidance resets, deal announcements, and sector rotation, investors will likely focus on upcoming earnings and forward-looking commentary—particularly for groups tied to semiconductors and AI infrastructure financing. Next catalysts to watch include additional company updates on demand outlooks, any follow-through on upgrade-driven momentum in consumer and retail names, and broader market direction as investors assess risk amid elevated sensitivity to funding and macro conditions.
