S&P 500 Top Gainers and Losers: Index Falls as Fed Cuts Rates with Cautious Tone

S&P 500 Top Gainers and Losers: Index Falls as Fed Cuts Rates with Cautious Tone

Key Highlights:

S&P 500 fell 3% on December 18, 2024, after the Federal Reserve cut interest rates but hinted at caution for future policy.

Paycom (PAYC) led the losses, tumbling 10.1%.

Jabil (JBL) topped the gainers, soaring 7.3%.

Market Overview:

The S&P 500 reversed early gains to close 3% lower on Wednesday following the Fed's rate-cut announcement and cautious comments from Chair Jerome Powell. The Dow lost 2.6%, marking its 10th consecutive daily decline—the longest streak since 1974. The Nasdaq dropped 3.6%, driven by worries about the tech sector's interest-rate sensitivity

Top Losers:

Paycom Software (PAYC): -10.1%

Paycom shares plummeted as concerns about cannibalization from its Beti payroll solution persisted. Recent price target increases from analysts remain below current stock levels, adding to market unease.

Tesla (TSLA): -8.3%

Tesla retreated from record highs amid reports of federal investigations into national security concerns involving CEO Elon Musk and SpaceX. This pullback follows bullish projections for Tesla's AI and autonomous driving initiatives.

Boston Properties (BXP): -7.6%

The REIT specializing in premium office properties saw sharp declines, reflecting uneven recoveries in West Coast and suburban markets.

Broadcom (AVGO): -6.9%

The semiconductor giant fell for the second day, following an extended rally that pushed its valuation above analysts' price targets.

Top Gainers:

Jabil (JBL): +7.3%

Jabil led the gains after surpassing quarterly sales and profit expectations and raising its full-year guidance. Strong demand in cloud, data center infrastructure, and digital commerce sectors drove the surge.

Cigna (CI): +6.3%

Cigna shares rebounded alongside other healthcare companies, recovering losses tied to concerns about potential regulatory changes in the pharmacy benefit management industry.

UnitedHealth (UNH), Centene (CNC), CVS Health (CVS):

These healthcare companies also regained ground as investors reassessed political risks affecting the PBM sector.

Despite the gains in some sectors, the broader market remains cautious as investors digest the Fed’s rate-cut decision and its implications for economic growth moving forward.