Major Indexes Experience Largest Single-Day Decline in Almost Two Years

The stock market experienced significant movements on Monday, with some companies seeing substantial gains while others faced steep declines. Let’s take a closer look at some of the biggest movers in the S&P 500 index on that day.

Decliners:
1. Caesars Entertainment (CZR) – Shares of the casino operator dropped 6.9% due to tough competition in its regional operations and lower-than-expected revenue for the second quarter. The company also announced the sale of the World Series of Poker brand.
2. Walgreens Boots Alliance (WBA) – The pharmacy giant’s shares fell 6.6% as it announced the sale of its stake in drug distributor Cencora to fund operations and pay down debt.
3. Etsy (ETSY) – The online crafts marketplace saw a 6.6% decline after analysts cut their earnings forecast for the current quarter.
4. Intel (INTC) – Shares of the semiconductor giant lost 6.4% following weaker-than-expected quarterly results and cost-cutting measures.

Advancers:
1. Kellanova (K) – The maker of Eggo Waffles and other packaged food brands saw a 16.2% increase in its stock price amid reports of a potential acquisition by Mars.
2. Tyson Foods (TSN) – The meat producer’s shares added 2.1% after reporting better-than-expected sales and profits for the third quarter.
3. CrowdStrike Holdings (CRWD) – The cybersecurity firm gained 1.9% as it refuted claims from Delta Air Lines regarding flight disruptions.

The broader market also experienced significant volatility, with the tech sector taking a hit as the Magnificent Seven stocks fell sharply. The S&P 500 recorded its worst day since September 2022, with concerns about a weakening U.S. economy and overbought tech stocks contributing to the sell-off.

Additionally, the Treasury yield curve briefly uninverted for the first time in more than two years, signaling concerns about a slowing economy. The Cboe Volatility Index (VIX) surged to its highest level since the early days of the Covid-19 pandemic, reflecting heightened market volatility.

Overall, investors sought the safety of bonds as the U.S. 10-year yield fell below 3.7%, with expectations of rate cuts and concerns about a potential recession driving the shift in investment strategies.

In conclusion, the stock market’s movements on Monday highlighted the ongoing challenges and uncertainties facing investors, with some companies benefiting from positive news while others faced significant headwinds. It’s essential for investors to stay informed and adapt their strategies to navigate the ever-changing market conditions.