Dow, S&P 500 Fall; Nasdaq Gains; Sandisk, Strategy, MP Materials, Nvidia, Tesla, and Other Movers
The S&P 500 and Dow lost their momentum on Wednesday, closing with their first loss of 2026.
The Dow fell 473 points, or 1%, while the S&P 500 fell 0.3%. Both broke three-day winning streaks. The tech-heavy Nasdaq topped the leaderboard, ending 0.2% higher.
The Russell 2000, an index encapsulating shares of smaller companies, was lower minutes before the closing bell.
The broader market rally stalled amid shifting sector preferences. Utilities stocks were the biggest loser within the S&P 500 today, down nearly 3%. They have bagged two good and two bad days in 2026 so far. Energy, another decliner for the day, is in the same boat as investors move in and out of the sector.
The real estate sector, which had risen steadily in 2026–lost over 1% today. The Vanguard Real Estate fund, the largest real estate ETF, ended the day nearly a percent lower.
Much of the shifting weight in sectors can be attributed to the macro signals. President Donald Trump announced on Truth Social that he’s planning to ban large institutional investors from buying more single-family homes.
A little over an hour later, he complained about defense companies that, in his view, are giving too much compensation to their executives and shareholders, “at the expense and detriment of investing in Plants and Equipment.” He said he will not permit them to offer dividends or stock buybacks until they solve these problems.
While the president doesn’t have direct authority over the dividend payments of a publicly listed company, defense contractors such as Lockheed Martin and Northrop Grumman do much of their business with the U.S. government. On Tuesday, Lockheed announced a seven-year agreement with the Defense Department.
Criticism of defense companies isn’t new. In August U.S. Treasury Secretary Scott Bessent criticized Boeing, a Dow component, for prioritizing stock repurchases over research and development. Still, an order completely stopping defense companies from paying dividends or buying back stock would be more aggressive stance.
