Stock Market Today: Stocks End Sharply Lower After Mid-Morning Reversal
Strong Meta earnings weren't enough to offset signs of a cooling economy.


Joey Solitro
Stocks appeared poised to build on Wednesday's Fed-fueled gains, opening higher across the board Thursday. However, the main indexes quickly swung into negative territory following a round of disappointing economic data.
Specifically, the Institute for Supply Management said its Manufacturing Purchasing Managers Index (PMI) fell to 46.8% in July from 48.5% in June. Readings below 50% indicate contraction – and this was the fourth straight month the index came in below the key level.
"U.S. manufacturing activity entered deeper into contraction," said Timothy Fiore, chair of ISM's Manufacturing Business Survey Committee. "Demand was weak again, output declined, and inputs stayed generally accommodative."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, U.S. construction spending fell 0.3% in June, missing economists' expectations for a 0.2% rise. The May figure was revised lower to a decline of 0.4% vs the previously reported 0.1% drop.
"The short-lived satisfaction of Fed Chief Powell communicating decent odds of a September rate cut has turned sour as investors are now panicking that the central bank isn't trimming soon enough," says José Torres, senior economist at Interactive Brokers.
In addition to the weak economic data, Torres says that following this morning's rate cut from the Bank of England (BoE), "market players are also worried that the U.S. is among the last to begin accommodating monetary policy."
According to CME Group's FedWatch Tool, futures traders are pricing in an 82% chance the central bank will cut rates by a quarter-percentage point in September.
Meta goes all in on AI
In earnings news, Meta Platforms (META) stock soared 4.8% after the Facebook parent topped expectations for its second quarter. The company also raised the low end of its full-year capital expenditures outlook and said it expects "significant capex growth in 2025" to support artificial intelligence (AI) research and product development efforts.
"We think greater AI integration and product enhancements not only support user engagement but also capture greater interest from 18 to 29-year-olds – an area where META has lagged peers," says CFRA Research analyst Angelo Zino, who reiterated a Buy rating on the stock.
The analyst also sees "growth prospects tied to expanding generative AI features," and improvements in rankings and recommendations.
Carvana rallies after earnings
Elsewhere, Carvana (CVNA) stock jumped 10.1% after the online auto retailer reported a surprise profit for its second quarter. The company's revenue also came in higher than expected.
It wasn't even two years ago that Carvana appeared to be on the brink of bankruptcy. But in 2024, the consumer discretionary stock has been one of the best performers on the price charts, up more than 200%.
Arm stock sinks on soft outlook
On the negative side of the ledger was Arm Holdings (ARM), which plunged 15.7% after the chipmaker reported earnings. While Arm disclosed higher-than-expected fiscal first-quarter earnings of 40 cents per share on revenue of $939 million, its full-year outlook came in soft vs what Wall Street expects.
This is the first time Arm hasn't raised its outlook after earnings, says Needham analyst Charles Shi (Hold), which "could be seen as a negative for the stock that trades at a sky-high valuation."
As for the main indexes, the Dow Jones Industrial Average finished the day down 1.2% at 40,347, the S&P 500 fell 1.4% to 5,446, and the Nasdaq Composite plunged 2.3% to 17,194.
Related content
- The Fed Is About to Cut Rates. What Should Investors Do?
- The Best Large-Cap Stocks to Buy
- Paris Olympics: 5 Sports-Related Stocks Going for Gold
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
- Joey SolitroContributor
-
‘Are You Better Off Than You Were 71 Days Ago?’ Cory Booker Marathon Senate Speech Highlights Tax Debate
Tax Policy A speech protesting Trump’s policies, including tax plans, breaks U.S. Senate records.
By Kelley R. Taylor Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
How to Invest in Sports
If it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
By David Dittman Published
-
Winning Strategies for Financial Advisers as Clients' Lives Evolve
How can the wealth management industry help make life transitions easier for the adviser and the client?
By David Conti, CPRC Published
-
How Advisers Can Establish Relationships With HNW Prospects
These strategies can help to build influence with high-net-worth individuals, who are often looking to an adviser for insight rather than solutions.
By Jeremy Green, CFP®, CTFA, CLU®, CEBS®, AEP®, EA, MSFS Published
-
When Your Car Is Fixed, But You've Still Got the Problem
This reader's experience with trying to get squealing brakes fixed under an extended warranty mirrors what others are experiencing these days.
By H. Dennis Beaver, Esq. Published
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published