U.S. stocks face pressure as chip, streaming and private equity names weaken

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Ciaran Ryan

17 hours ago

U.S. stocks face pressure as chip, streaming and private equity names weaken — Stocks under sector strain

Wall Street enters Thursday's session with momentum under strain after the S&P 500 ends a nine-day winning streak amid higher Treasury yields and firmer oil prices. Investor focus now shifts to whether recent market leaders can extend longer weekly runs, while several high-profile sectors show signs of fatigue.

Highlights

S&P 500 traders watch for a 10th straight weekly gain, which would be its longest since 1985, despite Wednesday's pullback.
Broadcom shares slip following a mixed quarter with a revenue miss, while Nvidia underperforms SOXX by a record 65 percentage points over 60 days.
Netflix extends an eight-session losing streak, erasing about a third of its market value as private equity and select media stocks deepen year-to-date losses.

Market watchlist for the next session

As reported by CNBC, traders are monitoring whether the S&P 500 can still secure a 10th consecutive weekly gain, which would mark its longest weekly winning streak since 1985, even after Wednesday's decline. Apple is also at a key point, with the stock entering the week on track for an 11th straight positive week, a run that would be its longest since November 2004.

Broadcom shares slip in after-hours trading after a mixed quarterly earnings report that includes a revenue miss. Still, Bernstein analyst Stacy Rasgon says on "Closing Bell: Overtime" that he remains bullish on the stock.

In semiconductors, Nvidia continues to lag the broader rally. Over the past 60 trading days, the iShares Semiconductor ETF, SOXX, jumps more than 82%, while Nvidia gains just 16%, leaving a roughly 65-percentage-point gap that CNBC says is the largest 60-day underperformance on record for the stock.

Sector losses deepen across media, energy and buyout firms

Private equity stocks tumble after Partners Group reportedly caps investor withdrawals from one of its funds. Shares of KKR, Blackstone, Carlyle Group and Blue Owl all finish sharply lower, and the group has now lost more than a quarter of its market value this year.

Nuclear-related stocks also give back much of the previous session's rally. Constellation Energy, Oklo and NuScale Power had surged after U.S. energy regulators grant a waiver that could speed the restart of Three Mile Island, with the Pennsylvania plant being brought back online to help supply electricity to Microsoft data centers in the region.

Netflix extends its recent decline with an eighth straight losing session, its longest losing streak since 2022. Another drop in the next session would make it the company's longest losing run since 2019, adding to a broader slide that leaves the shares down in nine of the last 10 months and erases roughly a third of Netflix's market value.

Lululemon is also in focus ahead of earnings due after Thursday's closing bell. The stock is down nearly 40% this year, has just logged its third straight losing month, and 85% of analysts covering the company maintain a hold rating, according to FactSet.

In our earlier article on the S&P 500’s rally facing a key test, we explained how upcoming earnings from Broadcom and CrowdStrike could set the near-term tone for chip, software, and cloud-linked trades. We also noted that options markets were pricing in roughly an 8% post-earnings move for Broadcom, with unusually heavy call activity highlighting elevated investor focus, while CrowdStrike’s implied move reflected heightened uncertainty around the report.

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