Dow drops nearly 400 points, S&P 500 heads for worst week in 3 months: Live updates

Stocks fell Friday, as Wall Street wrapped up the week defined by a rotation out of this year’s megacap winners in favor of smaller names.

The broad S&P 500 and technology-heavy Nasdaq Composite lost around 0.6% and 0.7%, respectively. The Dow Jones Industrial Average slid 373 points, or 0.9%. Friday’s moves mark another day of declines across the board, with the Russell 2000 also down. But a shift toward names viewed as bigger beneficiaries of interest rate cuts from the Federal Reserve, like small caps, still appears to be theme of the week.

The S&P 500 has dropped around 2%, on pace for its worst week since April. The Nasdaq has slipped more than 3%, putting a six-week winning streak at risk. On the other hand, the Dow is about 0.6% higher, while the small cap-focused Russell 2000 has climbed almost 2%.

“The stock market is experiencing a long overdue rotation,” said Glen Smith, chief investment officer at GDS Wealth Management. “Investors are taking money out of big tech stocks which have performed so well and moving that money into other areas of the market.”