Tech-Led Sell-Off Knocks Major Indexes Below Key Support while FTInvest 11 hits new record high

A sharp mid-morning sell-off in technology and mega-cap stocks drove a broad market decline, pushing the S&P 500 down 1.2%, the Nasdaq Composite lower by 1.8%, and the DJIA off 0.5% after a mixed start to the session.

The pressure proved heavy enough to pull the S&P 500 back below its 50-day moving average (6,766.98), as losses among the market’s largest constituents outweighed otherwise moderate weakness across the broader tape. Participation skewed decisively negative once selling accelerated, underscoring how dependent recent index performance has been on a narrow group of mega-cap leaders.

The information technology sector led the retreat, falling 2.2% as most of its largest components came under sustained pressure. Oracle was among the hardest hit, sliding 5.4% and extending last week’s post-earnings decline after the Financial Times reported that Blue Owl Capital will no longer fund a planned $10 billion data center project in Michigan. That development raised fresh concerns about the pace and scale of hyperscale AI infrastructure spending.

Those concerns quickly spilled into adjacent areas of the market. Power and infrastructure names sold off sharply on fears that delays or cancellations in large-scale data center projects could reduce expected demand growth for electricity generation and grid upgrades. GE Vernova dropped more than 10%, while Constellation Energy fell nearly 7%, dragging the industrials sector down 1.6% on the day.

Semiconductor stocks were also under notable pressure. Advanced Micro Devices extended its post-earnings slide, while NVIDIA and Micron moved lower as well, contributing to a 3.8% decline in the PHLX Semiconductor Index. The renewed weakness reinforced a broader pullback in the AI trade that has defined much of the recent volatility.

Communication services was another laggard, down 1.9%, as Alphabet added to its week-to-date losses. Sector-specific headlines added noise, with Warner Bros. Discovery’s board recommending that shareholders reject Paramount Skydance’s hostile takeover bid, favoring Netflix’s existing offer instead. Paramount, however, reiterated its intention to pursue the acquisition.

Consumer discretionary rounded out the weakest groups, falling 1.2%. Tesla declined more than 4%, while homebuilders slid after Lennar missed earnings expectations, weighing on sentiment across housing-related names.

Not all areas of the market finished in the red. The energy sector stood out with a 2.2% gain, rebounding after yesterday’s sharp drop in oil prices. Crude futures rose 0.9% to $55.80 per barrel, supported in part by reports that President Trump ordered a blockade of sanctioned tankers entering and leaving Venezuela. Consumer staples, materials, and real estate also posted modest gains, while financials ended the session flat.

Smaller-cap stocks fared poorly alongside the broader risk-off tone. The Russell 2000 fell 1.1% and the S&P Mid Cap 400 lost 0.5%, pushing both indexes into negative territory for the month.

Overall, the session underscored the market’s recent choppiness and its vulnerability to setbacks in the AI and mega-cap complex. Yesterday’s late rebound in large-cap tech proved short-lived, as renewed concerns about the timing and reliability of returns on massive AI infrastructure investments resurfaced. With the Vanguard Mega Cap Growth ETF down 1.9% on the day, the weight of losses among the market’s largest stocks once again made it difficult for the major averages to find any footing.

Our FTInvest 11 model portfolio delivered a strong outperformance versus the broader market, finishing the session up 1.05% and closing at a new all-time high of 937.19. The advance stood in sharp contrast to the major benchmarks, which struggled under renewed pressure in mega-cap and technology names.

Unlike the broader indices, FTInvest 11 maintained positive momentum throughout the session, benefiting from strength in select components that proved resilient amid the market’s risk-off tone. While benchmark performance was weighed down by losses in heavily weighted technology and AI-related stocks, the portfolio’s positioning allowed it to sidestep much of that weakness and continue its upward trajectory.

Today’s move reinforces the portfolio’s recent trend of relative strength, highlighting effective diversification and stock selection during a period of elevated volatility and sector rotation. With the index marking another record close, FTInvest 11 continues to demonstrate its ability to generate gains even as broader market leadership remains narrow and uneven.

Overall, the session underscored FTInvest 11’s defensive resilience and upside participation, extending its winning streak and further separating its performance from that of the major equity benchmarks.