Wall Street sags as tech stocks spiral down

NEW YORK — U.S. stocks drifted to a mixed finish Wednesday, as drops for Microsoft and other big-name tech stocks overshadowed gains across much of the rest of Wall Street.

The S&P 500 fell 16.33, or 0.4 percent, to 4,267.52 even though the majority of stocks within the index rose. The Dow Jones Industrial Average gained 91.74, or 0.3 percent, to 33,665.02, while the

Nasdaq composite fell

171.52, or 1.3 percent, to 13,104.89.

Microsoft, Amazon, Nvidia and Alphabet all sank at least 3 percent and were the heaviest weights on the S&P 500. Because they’re some of Wall Street’s most valuable stocks, their movements pack extra punch on the index.

It’s a reversal from much of this year, where a narrow group of highgrowth stocks led the way on hopes for easier interest rates from the Federal Reserve and excitement around artificial intelligence. But tech stocks are seen as some of the hardest hit by higher interest rates, and yields were on the rise in the Treasury market.

Yields climbed after the Bank of Canada raised its interest rates on Wednesday, surprising some investors after it had left rates steady since January. The Fed will make a decision on rates next week.

Campbell Soup, meanwhile, sank 8.9 percent after reporting weaker revenue for the latest quarter than expected. It also gave a forecast for earnings that fell short of analysts’ expectations, as price increases push some customers to buy less.

But much of the rest of the market rose as the gains on Wall Street broaden out some. The Russell 2000 index of smaller stocks jumped 1.8 percent to continue its hot streak since a strongerthan-expected report on hiring last week suggested a recession may be further off than feared.

On the winning side of Wall Street was Dave & Buster’s, which jumped 18.3 percent after reporting stronger profit for the latest quarter than expected.

The dominant expectation among traders is for the Fed to leave rates steady next week. That would mark the first meeting in more than a year where it hasn’t hiked rates. But traders still expect the Fed to resume raising rates in July.

That’s key because the goal of high interest rates is to corral high inflation by slowing the entire economy and hurting prices for stocks, bonds and other investments. The Fed has hiked its benchmark overnight interest rate to the highest level since 2007.

Pressure from high rates have caused cracks in banking and manufacturing industries, though the job market has remained remarkably solid.