The major US stock indices are closing lower today. The S&P and NASDAQ indices closed higher two straight days and closed at record levels as well. Although the S&P and NASDAQ indices both made new all-time intraday highs at 7385.02 and 26036.38 respectively, the gains cannot be sustained.
- Dow industrial average fell -314.04 points or -0.63% at 49601.95. For the 2nd day in a row, the index traded above the 50,000 level, but could not sustain momentum
- S&P index fell -28.03 points or -0.3% at 7337.10.
- NASDAQ index fell -32.75 points or -0.13% at 25806.20
- Russell 2000 also closed below record levels for the 1st time in 3 days with a decline of -47.14 points or at -1.63% at 2839.62.
The bigger losers today included:
- Shake Shack Inc: -28.27%
- Tapestry: -12.41%
- Whirlpool: -11.89%
- Arm: -10.10%
- Marvell: -7.05%
- Ciena Corp: -6.68%
- GE Vernova LLC: -6.53%
- Nebius NV: -5.29%
- Eaton: -5.26%
- Vertiv Holdings Co: -5.24%
- BAE Systems PLC: -5.17%
Some stories behind the losers today:
Shake Shack (-28.27%) — Earnings Disaster
Shake Shack tumbled roughly 30% after reporting an operating loss of $2.6 million and missing both earnings and revenue estimates. CEO Rob Lynch cited winter storms and an increase in projected store openings as drags on EBITDA, while the company also dealt with higher beef costs. Poor weather during the period hurt same-store sales by 240 basis points. Additionally, the company announced a new CFO and provided no formal guidance for the next quarter, which further unnerved investors.
Tapestry (-12.41%) — Beat Earnings, But Market Wasn’t Buying It
Tapestry posted strong Q3 results with EPS of $1.66 — up 62% year-over-year — and operating margin expanding 490 basis points. Despite the beat, the sell-off appears tied to ongoing weakness at Kate Spade, whose constant currency sales fell 11% to $219.6 million, alongside profit-taking after a significant run-up in the stock heading into earnings.
Whirlpool (-11.89%) — A Triple Blow
Whirlpool shares dropped sharply after reporting a Q1 net loss of $85 million, suspending its dividend, and cutting its 2026 profit outlook. Net sales fell 9.6% as U.S. appliance demand slumped, which Whirlpool linked to the war in Iran. The company slashed its 2026 adjusted EPS outlook to $3.00–$3.50 from a prior forecast of approximately $6 per share, a reduction JPMorgan attributed to higher raw material costs, a larger tariff drag than anticipated, and weaker pricing benefits.
ARM Holdings (-10.10%) — Supply Can’t Keep Up With Demand
Arm Holdings fell after the semiconductor and software design company topped earnings expectations but said it has not yet secured enough supply capacity to meet an additional $1 billion in demand tied to its new AGI CPU. Investors reacted negatively to the supply bottleneck, even amid otherwise strong results.
Marvell (-7.05%) — Profit-Taking After a Monster Rally
Marvell’s decline appears to be a market correction driven by concerns over its premium valuation and profit-taking after a substantial run-up, rather than any direct negative company news. Leading up to today, Marvell had climbed over 50% in the preceding month and more than 200% over the past year.
Ciena Corp (-6.68%) — AI Optical Play Pulls Back With the Sector
Ciena has been one of the biggest beneficiaries of the AI infrastructure build-out, with its stock surging from a 52-week low near $70 to over $560. Today’s pullback appears largely sector-driven, as optical networking stocks like Ciena have been heavily tied to AI investment spending, which Goldman Sachs analysts estimate could account for roughly 40% of all S&P 500 earnings growth this year — making any reset in sentiment felt sharply across the group.
GE Vernova (-6.53%) — Cooling Off After an All-Time High
GE Vernova hit an all-time high just two weeks ago following a blowout Q1 earnings report. Today’s decline looks like a broader rotation out of AI infrastructure names rather than any specific negative catalyst, with the stock still up approximately 167% over the past year.
Nebius NV (-5.29%) — Caught in the AI Infrastructure Pullback
Nebius, a European AI cloud company, was swept up in the broad sell-off across AI infrastructure names. With no specific news catalyst, the move reflects the same sector rotation hitting GE Vernova, Vertiv, and Eaton.
Eaton (-5.26%) & Vertiv Holdings (-5.24%) — AI Power Trade Under Pressure
Eaton plays a similar role to Vertiv in electrical distribution for data centers, with a more diversified industrial mix. The two are tightly linked to the same AI infrastructure trade — every megawatt added to a hyperscaler’s data center generates orders across both companies. Both stocks pulled back today as the group digested recent gains, with Vertiv also still carrying some overhang from softer-than-expected Q2 guidance issued two weeks ago. TECHi
BAE Systems (-5.17%) — EU-US Trade Tensions and Geopolitical Noise
BAE Systems fell as geopolitical and trade tensions rattled European defense and industrial names. Trump’s decision to raise EU auto tariffs to 25%, combined with pointed criticism of European NATO allies for not participating in the Iran conflict, created a risk-off tone for European equities broadly.
