Which stocks were in focus?

Walmart, Meta, General Motors, Kroger, and Qualcomm were among the stocks in focus.

What did the Fed chair say about inflation?

Kevin Warsh said inflation risks have come down.

S&P 500, Nasdaq End Lower as Tech Rotation Continues

The S&P 500 and Nasdaq ended the trading session lower as investors continued rotating out of technology and chipmaker stocks. Walmart, Meta, GM, Kroger, and Qualcomm were among the stocks in focus.

July 1, 2026

2 min read

Source: Stocktwits

The S&P 500 and Nasdaq ended the trading session lower as investors continued rotating out of technology and chipmaker stocks. Walmart, Meta, GM, Kroger, and Qualcomm were among the stocks in focus.

Possible Reasons

The decline comes after Federal Reserve Chair Kevin Warsh said inflation risks have eased. However, investors are still rebalancing portfolios away from the tech sector, which has seen significant gains recently, toward more defensive sectors like consumer staples.

Context

The S&P 500 posted a slight decline, while the Nasdaq fell more sharply, pressured by chipmaker stocks such as Qualcomm (QCOM). In contrast, shares of Walmart (WMT), Meta (META), General Motors (GM), and Kroger (KR) rose, reflecting a shift toward stocks with lower valuations and more stable earnings.

Similar Sector Moves

The tech sector has experienced similar selling in recent weeks as investors rotate into energy, healthcare, and consumer staples. Warsh's comments appear to have reinforced this trend, reducing inflation fears and making defensive stocks more attractive.

Frequently Asked Questions

The indices fell as investors continued rotating out of tech and chipmaker stocks into defensive sectors, despite the Fed chair's comments on easing inflation risks.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.