2026-08-05 · By SEPT AI
U.S. stocks closed in the red Wednesday, extending a recent losing streak as a broad-based technology selloff dragged the Nasdaq lower and pushed the Fear & Greed Index deeper into "Fear" territory at 27. The Dow eked out a near-flat performance, but the damage was concentrated in growth and small-cap names, underscoring a risk-off tone across the board.
The S&P 500 (SPY) fell 0.78% to close at $769.77, while the tech-heavy Nasdaq 100 (QQQ) dropped 1.23% to $717.30, its worst session in weeks. The Dow Jones Industrial Average (DIA) slipped just 0.09% to $542.81, finding support from defensive and value-oriented components. Small caps bore the brunt of the selling, with the Russell 2000 (IWM) declining 0.88% to $299.77.
Technology and consumer discretionary names led the decline, with the QQQ's slide reflecting profit-taking in high-multiple growth stocks. The broader market's weakness was broad but not uniform, as energy and materials stocks provided some relative strength. The Fear & Greed Index at 27 signals that investors are increasingly cautious, a sentiment that has been building over the past several sessions amid mixed earnings and cautious forward guidance from key companies.
A handful of stocks saw outsized moves, driven by a mix of earnings surprises, corporate actions, and speculative trading.
On the upside, YXT surged 220.08% to $23.43 on massive volume of over 23 million shares, though no specific catalyst was immediately identifiable in the data. ZYBT jumped 87.30% to $2.36, also on heavy volume. JLHL gained 33.38% to $9.35, while KLTR rose 30.34% to $1.89. ASTC added 25.48% to $9.11, and CDTG climbed 24.59% to $1.52. FUBO rallied 23.38% to $10.66, and CDW advanced 21.35% to $140.10.
On the downside, DBGI plunged 46.34% to $16.28, the session's biggest loser among the top movers. SPPL fell 38.32% to $2.02, and SUJA dropped 36.69% to $6.13. HYFM declined 25.69% to $1.62, while TJGC lost 23.21% to $4.12.
Key Earnings
Earnings season remained in full swing, with a flurry of reports driving individual stock moves.
Aeva Technologies (AEVA) shares traded higher after the company reported better-than-expected Q2 financial results. Remitly Global (RELY) also rose after beating Q2 estimates and raising its full-year sales guidance above consensus. Paycom Software (PAYC) gained on a Q2 beat and an upward revision to its FY26 sales outlook. Clover Health Investments (CLOV) rallied after reporting better-than-expected Q2 results and raising its FY26 sales guidance. Veeco Instruments (VECO) rose after beating Q2 estimates and raising its FY26 sales guidance. Magnite (MGNI) and Solaris Energy (SEI) also traded higher on strong earnings.
Novanta (NOVT) raised its FY2026 adjusted EPS guidance to $3.68-$3.74 from $3.50-$3.65, above the $3.59 estimate, and lifted its sales guidance to $1.130B-$1.140B from $1.040B-$1.055B. PaySign (PAYS) raised its FY2026 GAAP EPS guidance to $0.35-$0.37 from $0.21-$0.26, well above the $0.24 estimate, and boosted its sales outlook. Cognex (CGNX) issued FY2026 adjusted EPS guidance of $1.64-$1.68, above the $1.49 estimate, and sales guidance of $1.130B-$1.150B.
On the negative side, Radian Group (RDN) fell after reporting worse-than-expected Q2 results. Onterris (ONT) dropped after missing Q2 estimates and lowering its FY2026 sales guidance. Emergent BioSolutions (EBS) declined after cutting its FY2026 sales outlook and issuing weak Q3 guidance. ThredUp (TDUP) fell after missing Q2 EPS estimates and lowering its FY2026 sales guidance. Zillow Group (Z) traded lower after issuing Q2 results and FY26 sales guidance below estimates. Universal Technical (UTI) lowered its FY2026 sales guidance to $893M-$900M from $905M-$915M. Biote (BTMD) fell after reporting worse-than-expected Q2 results.
Other notable earnings included CVS Health (CVS) , which beat estimates with EPS of $2.58 vs. $1.87 est. on revenue of $106.1B. CF Industries (CF) posted a massive beat with EPS of $8.71 vs. $5.65 est. on revenue of $4.21B. BorgWarner (BWA) topped estimates with EPS of $1.34 vs. $1.26 est. Black Hills (BKH) beat with EPS of $0.54 vs. $0.42 est. W&T Offshore (WTI) beat with adjusted EPS of $0.02 vs. $(0.05) est. Ring Energy (REI) beat with adjusted EPS of $0.10 vs. $0.08 est. Iochpe-Maxion (IOCJY) beat with EPS of $0.04 vs. $0.02 est.
However, Disney (DIS) missed estimates with EPS of $1.51 vs. $1.88 est. Dynatrace (DT) missed with EPS of $0.12 vs. $0.25 est. DoorDash (DASH) missed with EPS of $0.46 vs. $0.50 est. Host Hotels & Resorts (HST) missed with EPS of $0.35 vs. $0.62 est. Fastly (FSLY) reported a loss of $0.15 per share. Next Technology (NXTT) shares fell after announcing a 100-for-1 reverse stock split.
Insider buying activity remained notable, with several companies seeing significant purchases. KKR & Co. (KKR) registered a STRONG_BUY score of 3, with 10 insider buys totaling $40.1 million. Taiwan Semiconductor (TSM) also scored a STRONG_BUY of 3, with 77 insider buys worth $1.2 million. Erie Indemnity (ERIE) had 3 insider buys for $1.4 million, and MercadoLibre (MELI) had 4 insider buys for $1.3 million.
Other notable insider buying included Ryan Specialty (RYAN) with 9 buys totaling $5.6 million, SLR Investment (SLRC) with 8 buys for $3.8 million, and DLH Holdings (DLHC) with 17 buys for $758,192.
Investors will be watching for additional earnings reports and economic data tomorrow, including weekly jobless claims and any commentary from Federal Reserve officials. The market's focus remains on the trajectory of interest rates and corporate guidance, with the Fear & Greed Index suggesting that sentiment could deteriorate further if earnings disappoint. Tech stocks will be in the spotlight after today's selloff, with traders looking for signs of stabilization or further downside.
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