S&P 500 and Nasdaq Composite End Winning Streaks with Lower Closes

On Tuesday, August 20, 2024, the S&P 500 saw some significant movements among its top performers and decliners. Let’s take a closer look at the biggest movers of the day.

Decliners:
Several companies in the medical devices sector faced pressure after a study revealed that Eli Lilly’s blockbuster drug significantly reduces the risk of patients developing type 2 diabetes. Insulet, a manufacturer of insulin pumps, saw its shares plummet by 6.9%, marking the weakest daily performance in the S&P 500. DexCom, known for its continuous glucose monitors, also experienced a decline of 6.2%.

Crude oil futures prices moved lower due to hopes for easing tensions in the Middle East and sluggish economic growth in China, leading to a downward pressure on oil and gas stocks. Valero Energy, Phillips 66, and Marathon Petroleum saw their shares fall by 4.7%, 4.2%, and 4.1%, respectively.

Boeing shares took a hit, dropping by 4.2% after the company announced the grounding of its 777X test fleet. This decision came after an inspection revealed the failure of a key engine mounting structure, adding to a series of safety and production-related setbacks for the aircraft manufacturer this year.

Advancers:
On the other hand, Palo Alto Networks, a cybersecurity firm, posted better-than-expected sales and profits for its fiscal fourth quarter. Its shares surged by 7.2%, making it the top gainer in the S&P 500 for the day. Wall Street analysts raised their price targets on Palo Alto stock, praising the company’s ongoing efforts in „platformization“ and AI integration initiatives.

Darden Restaurants, the operator of popular chains like Ruth’s Chris Steak House and Olive Garden, saw its shares rise by 3.7% after Raymond James reaffirmed its „outperform“ rating on the stock. The company’s plans to open new restaurants and reinstate promotions like the „Never Ending Pasta Bowl“ also contributed to the positive sentiment.

PayPal Holdings also experienced a jump in its shares, rising by 3.5% after analysts at JPMorgan reiterated their „overweight“ rating on the stock and raised their price target. Positive commentary from industry experts and an expansion of its partnership with Ayden further boosted investor confidence.

In another surprising turn of events, the price of gold hit an all-time high on Tuesday, defying the conventional wisdom that gold performs best during periods of financial market distress. Central banks‘ increased demand for gold and expectations of continued growth in 2025 have contributed to this unexpected trend.

Overall, the S&P 500 witnessed a mix of ups and downs on Tuesday, reflecting the dynamic nature of the market and the various factors influencing stock movements. Investors will continue to monitor these developments closely to make informed decisions in the ever-changing landscape of the financial world.