Top Movers of the Day

Treasury yields hit four-month lows due to favorable U.S. inflation data, prompting investors to shift from info tech to small caps and other sectors that thrive when rates drop. The chance of a September Federal Reserve rate cut exceeded 90%. Major U.S. indexes dropped, with tech-dominated mega caps falling, but small-cap shares rose nearly 4%, and the S&P 500 Equal Weight index gained 1%. The June CPI decline and lower annual CPI and core rates signaled progress, leading to a broader market rally. Upcoming earnings season from major banks may impact market sentiment.

Here are the top movers and why they are moving:

• Delta Air Lines: Stock fell 4% due to a lower-than-expected Q3 sales growth forecast and a nearly 30% drop in Q2 net income. American Airlines and United Airlines shares also dropped.

• MicroStrategy: Shares rose 4% after announcing a 10-for-1 stock split to make its stock more accessible.

• WD-40: Stock climbed 4% as Q3 net sales increased by 9% and gross margin improved.

• Costco Wholesale: Shares fell 4.3% after announcing its first membership fee increase since 2017.

• QuantumScape: Shares soared 30.5% after announcing a deal with Volkswagen's PowerCo to mass-produce solid-state battery technology.

• SoundHound AI: Stock rose 6.4% after launching its voice assistant to be integrated into Stellantis vehicle brands.

• Conagra Brands: Shares fell 1.5% due to lower-than-expected Q4 revenue and soft guidance.

• Lantheus Holdings: Shares rose 16.4% following a proposed rule from CMS targeting diagnostic radiopharmaceutical costs.

• PepsiCo: Hovered near flatline with mixed Q2 results; earnings beat estimates, but revenue fell short.

• Tesla: Shares fell 8.4% after delaying its robotaxi unveiling from August to October.

• Homebuilding Stocks: SPDR S&P Homebuilders ETF surged 6% on hopes of Fed rate cuts, with Mohawk Industries, Builders FirstSource, and D.R. Horton advancing.

• Semiconductor Names: VanEck Semiconductor ETF slipped 3.6%, with Nvidia and AMD shares dropping.