Markets Retreat as Tech Rally Fizzles, Ending S&P 500's Six-Day Winning Streak

Stocks pulled back Tuesday as enthusiasm around big tech stocks faded, halting the S&P 500’s six-day climb—its longest winning streak in nearly a month.

The S&P 500 slipped 0.39% to close at 5,940.46, while the Nasdaq Composite fell 0.38% to 19,142.71. The Dow Jones Industrial Average declined by 114.83 points, or 0.27%, finishing the session at 42,677.24.

Technology stocks, which had fueled the recent rally, saw broad declines. Nvidia dropped 0.9%, while shares of Advanced Micro Devices, Meta Platforms, Apple, and Microsoft also ended lower. The tech sector as a whole lost 0.5% on the day.

Despite Monday’s modest gains, the market has been in the midst of a sharp five-week rebound, with the S&P 500 rising more than 20% from its April low following President Donald Trump’s announcement of new tariffs. The index is now within 3% of its all-time high.

“We’ve seen a dramatic swing—from the initial pullback triggered by the tariffs to a powerful rally as fears of escalation eased,” said Bill Northey, investment director at U.S. Bank Wealth Management. “Now, the market is waiting for more concrete direction, caught between optimism and uncertainty.”

Tesla shares bucked the broader trend, rising 0.5% after CEO Elon Musk reaffirmed his commitment to stay at the helm of the company for at least five more years. “Yes, no doubt about that at all,” Musk said at the Bloomberg Qatar Economic Forum in Doha.

Meanwhile in Washington, President Trump faced resistance from key House Republicans over a proposed tax bill, specifically regarding the cap on state and local tax deductions. Their opposition casts doubt on the legislation’s chances of passing before the Memorial Day recess.

Disclaimer