CrowdStrike, AMD Among the Few S&P 500 Gainers in a Sea of Red

On Monday, the stock market faced a severe setback, marking one of the most challenging trading days of the year. The S&P 500 Index plummeted by 3%, enduring its steepest decline since August 26, 2022, when it had experienced a 3.4% drop. This widespread selloff was felt across the board, with substantial losses reported by major indices and a broad swath of stocks.

The breadth of the decline was particularly striking. On the New York Stock Exchange, nearly 91.8% of the approximately 2,900 listed stocks ended the day in negative territory. The situation was similarly grim on the Nasdaq, where roughly 83.7% of the nearly 4,500 listed stocks closed lower. This broad-based selloff underscores the severity of the market’s downturn and reflects widespread investor concern.

The S&P 500’s decline was accompanied by a broad pullback across all 11 key sectors tracked by the SPDR ETFs, reflecting growing anxiety over an economic slowdown and a global market retreat. Within the S&P 500, only 23 stocks, which constitutes fewer than 5% of the index’s components, managed to finish higher on the day. This highlights how pervasive the negative sentiment was.

Despite the overall market downturn, some stocks managed to stand out. The Technology Select Sector SPDR ETF, although the weakest among the sector trackers, had the most stocks from the S&P 500 that managed to end the day in positive territory. Notable among these was CrowdStrike Holdings Inc., which saw its stock rise by 1.9%. This uptick came after a period of decline caused by a software bug that led to a global technology outage. A letter from CrowdStrike to Delta Air Lines, which was reportedly seeking damages for the outage, stated that any potential liability would be capped in the “single-digit millions,” providing some relief to the stock.

Advanced Micro Devices Inc. (AMD) also saw a rise in its stock, climbing by 1.8%. This gain was attributed to a delay in Nvidia Corp.’s new Blackwell chip lineup, which allowed AMD to gain a competitive edge amid the broader tech sector selloff.

The performance of sector ETFs highlighted some areas of relative strength. The Consumer Staples Select Sector SPDR ETF and the Consumer Discretionary Select Sector SPDR ETF were tied for second place in terms of the number of stocks that ended the day in positive territory. The Consumer Staples ETF benefited from its defensive nature, as consumer staples stocks tend to be less sensitive to economic fluctuations. On the other hand, the Consumer Discretionary ETF’s performance was somewhat surprising given that consumer discretionary stocks are typically more vulnerable to economic downturns.

Among the S&P 500’s gainers, Kellanova stood out with a significant 16.2% increase in its stock price. This rise followed news that Mars was considering acquiring the branded foods and convenience products company. Tyson Foods Inc. also reported a notable 2.1% gain after the company posted better-than-expected fiscal third-quarter earnings, reflecting strong performance in the meat production sector.

Other notable gainers included Constellation Energy Corp., which saw a rise in its stock, and Booking Holdings Inc., which also performed well despite the broader market decline. On Semiconductor Corp. and Church & Dwight Co. Inc. were among the technology and consumer staples companies that saw their stocks increase, while Tractor Supply Co. and CBOE Global Markets Inc. also posted gains.

Conversely, the biggest decliners in the S&P 500 included shares of Caesars Entertainment Inc., Walgreens Boots Alliance Inc., and Etsy Inc., which saw substantial declines. Nvidia and Intel Corp., both technology sector giants, also experienced significant losses.

The dramatic market movements on Monday reflect a turbulent period for investors, characterized by a sharp selloff across major indices and sectors. This widespread decline underscores ongoing concerns about the economic outlook and highlights the challenges faced by investors amid a volatile market environment.