Closing Bell: Volatility Surges as Markets De Risk Ahead of Friday’s CPI Key Points

• Markets closed sharply lower as heavy selling pressure weighed on Technology and Financial sectors. The S&P 500 (SPX) fell 1.57%, the Nasdaq-100 (NDX) dropped 2.04%, and the Russell 2000 (RUT) declined 2.01%.
• Cisco (CSCO) fell more than 12% despite beating earnings expectations, as forward guidance largely met — rather than exceeded — analyst forecasts.
• AppLovin (APP) declined 19.68% after strong Q4 results were overshadowed by weaker-than-expected EBITDA margin guidance. 

Markets ended the day sharply lower as intense selling pressure hit the Technology and Financial sectors. The S&P 500 (SPX) finished down 1.57%, the Nasdaq-100 (NDX) fell 2.04%, and the Russell 2000 (RUT) remained under pressure, closing lower by 2.01%. Utilities and Consumer Staples were the top performing sectors, while Information Technology, Energy, and Financials lagged.

Cisco Drops Over 12% on Lackluster Guidance

Cisco (CSCO) shares were under pressure today after the company reported better-than-expected earnings but issued guidance that largely met analyst expectations. The company reported Q2 revenue of $15.35 billion, compared to analyst estimates of $15.12 billion. Adjusted EPS came in at $1.04 versus expectations of $1.02. The company continues to see double-digit growth in product orders, and hyperscaler AI infrastructure orders totaled $2.1 billion during the quarter.

AppLovin Under Pressure After Competition Concerns

AppLovin (APP) shares closed down 19.68% after the company reported earnings that beat analyst expectations but provided guidance that raised concerns about its ability to maintain margins and defend market share against lower-priced competitors. The company reported Q4 sales of $1.66 billion and adjusted EPS of $3.24, both exceeding expectations. However, adjusted EBITDA margin guidance came in below market expectations.

Market Events for Tomorrow

• 08:30 AM ET: CPI 

Notable Earnings for Tomorrow

• A.M: AAP, ALK, CCJ, ENB, MRNA, SXT, TRP, WEN
• P.M: N/A

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.