Profit-taking in high-flying tech names and mixed sector performance weigh on the index, with SpaceX and Tesla among decliners.
The Nasdaq Composite fell 0.5% in early trading as momentum-driven tech stocks reversed gains, offsetting broader market strength. SpaceX, which surged 20% earlier to $225, trimmed gains to $206, still up 7.4% on the day amid profit-taking ahead of options trading debut. Tesla declined 2.2%, while chipmakers Broadcom and Nvidia underperformed, signaling a shift toward cyclical sectors.
Travel and airline stocks extended gains, with Expedia rising 2.3% and American Airlines up 4.5%, supported by a $3 drop in oil prices. Intel fell 5.7%, nearing a technical double top, while Western Digital remained 6.5% higher despite paring earlier gains. Netflix slid 3.8% after losing the Roku bidding war to Fox, nearly erasing its post-Warner Brothers auction rally.
The mixed session reflects late-stage market behavior, with investors rotating out of high-valuation tech names into sectors benefiting from lower energy costs. SpaceX’s market cap now hovers near Amazon’s $330 billion, underscoring its rapid ascent in public markets.