The S&P 500 (SPX) isn’t doing so hot on Wednesday, with the index dropping 0.51% following the release of the latest inflation data for October. Inflation remains above the Federal Reverse’s expected 2% at 2.3% in the most recent personal consumption expenditures (PCE) report. However, it did match experts’ predictions for the month.
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Inflation data has been a key concern for public companies as it influences the Fed’s decisions on interest rates. Higher interest rates can have a negative effect on growth companies. That includes many in the tech sector, which make up a large portion of the S&P 500.
The Biggest Stocks Dragging Down the S&P 500 Today
Broadcom (AVGO) isn’t doing the S&P 500 any favors today, with the chip stock’s shares falling 4.2% as of this writing. Nvidia (NVDA) is another tech giant weighing on the index with a 3.32% drop following the latest inflation report. A 3.58% slip for Oracle (ORCL) and a 3.79% slide for Salesforce (CRM) are also bad news for the index.
Other sectors are causing problems for the S&P 500 today as well. Meta Platforms (META) and Netflix (NFLX) are dragging down the communications services sector, while Tesla (TSLA) and Amazon (AMZN) are keeping the consumer cyclical sector in the red.
Are S&P 500 Stocks Worth Buying?
While these stocks are down today, that might be good news for investors seeking an entry point. Also, there is still hope for the central bank to cut interest rates next month, which could be a boon to these shares. With that in mind, below is a comparison of these stocks. Meta and Nvidia are at the top of the bunch with perfect Smart Scores of 10, while Amazon and Salesforce are right behind them with Smart Scores of 9 out of 10.
