Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What's Driving Markets Thursday?

Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What's Driving Markets Thursday?

Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What's Driving Markets Thursday?

A lower-than-expected inflation report for June caused wild market reactions, leading to a surge in traders’ expectations of Federal Reserve rate cuts and boosting assets that are particularly sensitive to high interest rates.

As the annual inflation rate slowed from 3.3% to 3%, below the predicted 3.1%, and the monthly reading indicated the first contraction (-0.1%) in four years, traders swiftly increased their odds of a September rate cut, now placing a 92% chance.

Surprisingly, large-cap indices such as the S&P 500 and the tech-heavy Nasdaq 100 index fell, dropping 0.9% and 2.1% respectively, with the latter eyeing its worst daily performance of 2024, previously seen on April 30. These reactions suggest that market participants had likely already priced in rate cut expectations into tech stock valuations and are now rotating from top-performing sectors to laggards.

The outperformance of the S&P 500 real estate sector over tech by more than 5 percentage points marked the largest one-day relative change in over four years, indicating a potential sectoral shift.

Other assets making significant moves included small caps, with the iShares Russell 2000 ETF (NYSE:IWM) up 3.3%, its strongest one-day return since mid-December 2023; gold, up 1.7%; and long-dated Treasury bonds, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rallying 1.5%.

Equity industries showing notable growth were those positively impacted by the prospects of lower interest rates. Homebuilders, tracked by the SPDR Homebuilders ETF (NYSE:XHB), were up 6.7% for the day, their strongest one-day performance since mid-December 2023. Regional banks, represented by the SPDR S&P Regional Banking ETF (NYSE:KRE), rose 3.4%. Gold miners, tracked by the VanEck Gold Miners ETF (NYSE:GDX), climbed 2.4%, on track for their highest close since April 2022.

Bitcoin (CRYPTO: BTC) was flat at $57,800.

Thursday’s Performance In Major US Indices, ETFs

Major Indices


1-day %chg

Russell 2000



Dow Jones


0.1 %

S&P 500



Nasdaq 100



Updated at 1:05 PM ET

According to Benzinga Pro data:

  • The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.9% lower to $556.201.

  • The SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.1% higher to $397.59.

  • The tech-heavy Invesco QQQ Trust (ARCA: QQQ) tumbled 2.1% to $492.83.

  • Sector-wise, the Real Estate Select Sector SPDR Fund (NYSE:XLRE) outperformed, up by 2.5%, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, falling 2.4%.

Thursday’s Stock Movers

  • Tesla Inc. (TSLA) fell over 6%, after Bloomberg flagged delays in the Robitaxi project.

  • Top-performers within real estate stocks were Communications Corporation (NYSE:SBA) Alexandria Real Estate Equities, Inc. (NYSE:ARE), both up 6.5%.

  • PepsiCo Inc. (NYSE:PEP) was 0.4% higher, following quarterly earnings.

  • Other stocks reacting to earnings were Delta Air Lines Inc. (NYSE:DAL), ConAgra Brands Inc. (NYSE:CAG), up 0.4% and down 2% respectively.

  • Caesars Entertainment Inc. (NASDAQ:CZR) rose 6.7%.

Read Next:

Image created using artificial intelligence via Midjourney.

"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What's Driving Markets Thursday? originally appeared on

© 2024 Benzinga does not provide investment advice. All rights reserved.


Related stories
3 days ago - S&P 500 To Plunge More Than 20% Near Term? Top Economist Breaks Down Broader Market Vs. Small-Cap Divergence After June CPI Report  BenzingaView Full Coverage on Google News
4 days ago - Investors took cooler June CPI as a sign to rotate out of some of the most richly valued names in tech and into less loved small and mid-cap stocks.
3 days ago - The latest leg higher for stocks should soothe some fears of over-concentration in the market as nearly 90% of the S&P 500 gained in Friday's session.
2 weeks ago - Dow Jones Futures: Nasdaq Leads As Nvidia Jumps; FedEx, Rivian Skyrocket Late  Investor's Business DailyBloomberg Evening Briefing: Tech Stocks Recover Following Nvidia's Drubbing  BloombergNvidia shares rebound after steep...
2 weeks ago - Dow Jones Futures: Micron Falls On Earnings; Tesla, Amazon In Buy Zones  Investor's Business DailyStock market today: US futures slip as Micron slides, with data on deck  Yahoo FinanceStock Market Today: Dow, S&P Live Updates for June...
Other stories
18 minutes ago - Investors assessed another batch of big bank earnings and looked to fresh retail data amid growing conviction an interest rate cut is near.
54 minutes ago - The U.K.’s antitrust watchdog has launched a review of a partnership that Microsoft Corp. inked with Inflection AI Inc,. a heavily funded OpenAI rival, earlier this year. The Competition and Markets Authority, or CMA, announced the move...
1 hour ago - Dow surges by more than 700 points as investors bet on September rate cut  CNNStock market today: Dow, S&P 500 build on records as a retail sales surprise fuels rate cut hopes  Yahoo FinanceUS stocks rise amid rate cut cheer; retail sales...
1 hour ago - Nvidia’s market cap will soar to $50 trillion—yes, trillion—says early investor in Amazon and Tesla  FortuneJensen Huang's Nvidia could be worth more than current S&P 500 index value in ten years: Report  Hindustan TimesNvidia could reach...
1 hour ago - Amazon Prime Day causes workplace injuries, Senate probe finds  The Washington PostBernie Sanders says Amazon's warehouse workers get injured at an 'outrageous level' during Prime Day season  FortuneWhen is Amazon Prime Day 2024? Dates,...