S&P 500 Posts Second Straight Weekly Drop as Tech Sector Slides

The Standard & Poor's 500 index fell 1.4% this week, capping the second straight weekly decline, as technology stocks dropped.

The S&P ended the week at 5,728.80, a day after the market benchmark closed out October with a 1% drop, only the second monthly decline this year. The index has gained 20% in 2024.

The index rose 0.4% on Friday as weaker-than-expected October nonfarm payrolls boosted expectations for the Federal Reserve to cut interest rates further. Total nonfarm payrolls last month climbed 12,000, trailing the 100,000 increase expected by analysts. The unemployment rate held at 4.1%, matching forecasts.

Friday's gain pared declines earlier in the week.

All but two sectors posted weekly losses. Technology led the slide with a 3.3% drop, followed by a 3.1% decline in real estate and a 2.8% fall in utilities.

Super Micro Computers (SMCI) shares plunged 45% this week, leading declines in the technology sector. The artificial intelligence server maker said Ernst & Young resigned as auditor months after the accounting firm highlighted concerns regarding internal controls over financial reporting.

Shares of Qorvo (QRVO) shed 27% in the week. The company's fiscal Q3 results earnings and revenue guidance trailed market estimates after fiscal Q2 results topped the Wall Street consensus.

In real estate, shares of BXP (BXP) fell 9% this week after the company lowered the top end of its guidance range for full-year funds from operations.

This week, communication services rose 1.5%, and consumer discretionary edged up 0.5%.

Charter Communications (CHTR) shares jumped 9.1%. The broadband connectivity company and cable operator's third-quarter results increased more than forecast, buoyed by double-digit revenue gains in residential mobile services and advertising.

Companies expected to report quarterly results next week include Vertex Pharmaceuticals (VRTX), Qualcomm (QCOM), Gilead Sciences (GILD), Arista Networks (ANET), Duke Energy (DUK) and Airbnb (ABNB).

The economic calendar features reports on US productivity for Q3 as well as September factory orders and wholesale inventories. Investors will also focus on the outcome of a two-day Federal Open Market Committee meeting that concludes Thursday with a rate decision. The US presidential election is on Tuesday.