Finance

Fresh economic data indicated a pullback in consumer activity, with July retail sales contracting by 0.6%. Concurrently, a preliminary reading from the University of Michigan highlighted a sharper-than-expected decline in consumer sentiment, driven by persistent inflation concerns. The combination of slowing growth and elevated living costs has created an uncertain backdrop for investors.

Applied Materials witnessed a 5.4% drop in its stock price despite posting quarterly revenue and profit figures that surpassed Wall Street expectations. The selloff underscores growing investor anxiety regarding high valuations and the sustainability of artificial intelligence hardware spending. Other prominent chipmakers, including Broadcom, also finished the day significantly lower.

Shares of the social media platform surged over 11% following an announcement by S&P Dow Jones Indices that the stock will be added to the benchmark index prior to the opening bell on August 18. This inclusion forces automated index-tracking funds and institutional managers to acquire the asset, sparking a wave of proactive buying.