Wall Street traded mostly lower on Thursday as sharp post-earnings declines in Honeywell Aerospace, Western Digital, AppLovin and Datadog outweighed gains in selected semiconductor and industrial shares. SpaceX dominated trading activity following the expiration of its post-IPO lock-up period.
NEW YORK, August 6, 2026 — US stock markets struggled for direction around midday on Thursday, with the Dow Jones Industrial Average underperforming as investors reacted to corporate results, cautious forecasts and unusually large movements in individual stocks.
At approximately midday in New York, the Dow Jones Industrial Average was down about 0.6%, threatening to end a five-session winning streak. The S&P 500 declined approximately 0.2%, while the Nasdaq Composite traded close to unchanged after recovering from its opening losses.
This represented a change from the opening pattern. The Dow had initially moved slightly higher, while the Nasdaq opened under pressure. As the session progressed, selected semiconductor shares recovered, but weakness spread across software, aerospace and several earnings-sensitive companies.
US indices around midday
| Index | Approximate change | Market trend |
|---|---|---|
| Dow Jones Industrial Average | -0.6% | Aerospace and large-cap weakness |
| S&P 500 | -0.2% | Earnings winners offset major decliners |
| Nasdaq Composite | Near unchanged | Chip recovery countered software losses |
| Russell 2000 | -0.3% | Smaller companies remained under pressure |
| Philadelphia Semiconductor Index | About +1.8% | Selected chipmakers rebounded |
Figures were observed during the session and will differ from closing levels.
Aerospace warning sends Honeywell sharply lower
Honeywell Aerospace was the session’s most important large-cap decliner, falling approximately 21% after publishing disappointing quarterly results and reducing its full-year outlook.
The newly independent aerospace company reported adjusted quarterly earnings of $1.87 per share and sales of $4.52 billion, both below market expectations.
Management reduced its forecast for 2026 organic sales growth to between 4% and 5%, from a previous range of 7% to 9%. The company also lowered its earnings expectations as supply-chain problems continued to restrict the availability of mechanical components.
Honeywell Aerospace said it had prioritised deliveries to major aircraft manufacturers, including Boeing and Airbus. That decision affected the company’s more profitable aftermarket operations.
The shares fell as much as 26% during the session before recovering part of the decline. The sell-off placed substantial pressure on aerospace and industrial sentiment. Reuters
Software shares suffer a broad sell-off
Software stocks recorded some of the largest losses as investors punished companies whose outlooks failed to match elevated expectations.
AppLovin declined approximately 19%, despite reporting quarterly figures that were not uniformly weak. Investors focused on future revenue growth and the company’s valuation following its previous advance.
Datadog lost around 15% after its third-quarter revenue forecast disappointed the market. The cloud-monitoring company had exceeded expectations for the latest quarter, but that was insufficient to prevent profit-taking.
Other software companies also retreated:
| Company | Approximate change | Principal concern |
|---|---|---|
| HubSpot | -22% | Earnings outlook and valuation |
| AppLovin | -19% | Revenue-growth concerns |
| Figma | -17% | Post-results selling |
| Datadog | -15% | Cautious third-quarter forecast |
| Zillow | -12% | Weak sales and guidance |
| Peloton | -12% | Declining demand |
| Duolingo | -8% | Valuation and forward expectations |
The losses demonstrated that the market is becoming considerably less tolerant of cautious forecasts. Companies are now expected to deliver both strong quarterly results and evidence that growth will remain high enough to justify premium valuations.
Western Digital and Sandisk retreat despite strong results
Data-storage shares remained among the most closely watched technology stocks.
Western Digital fell approximately 19%, putting the shares on course for their worst session since April 2025. Sandisk declined around 13%.
Both companies published strong quarterly results and relatively robust revenue forecasts. Nevertheless, investors had expected even more after their extraordinary advances earlier in 2026.
Western Digital shares had more than tripled during the year before Thursday’s decline, while Sandisk had risen more than fivefold. This left the stocks extremely vulnerable to profit-taking.
Investors were also concerned that recent increases in memory and storage prices could eventually moderate.
The declines were therefore less a reaction to weak current demand than to exceptionally demanding valuations and uncertainty about whether present growth rates can be sustained. Reuters
Semiconductor recovery limits the Nasdaq’s decline
The technology sector was not uniformly negative.
While storage companies fell, AMD, Qualcomm and Marvell Technology gained approximately 2%, contributing to an advance of around 1.8% in the Philadelphia Semiconductor Index.
Nvidia fluctuated around unchanged on very high volume.
This divergence showed that investors were differentiating between semiconductor segments. Demand for artificial-intelligence computing capacity continued to support processor and networking companies, while storage shares suffered from concerns about pricing expectations and their previous gains.
Parker-Hannifin leads major winners
Industrial company Parker-Hannifin advanced approximately 7% after publishing encouraging results and providing an upbeat profit forecast.
The positive reaction contrasted sharply with Honeywell Aerospace’s decline. Investors viewed Parker-Hannifin’s results as evidence that demand remains resilient for companies able to manage supply chains and protect margins.
Albemarle gained around 7% to 8%, becoming one of the strongest S&P 500 performers after its quarterly publication. The lithium producer benefited from improving lithium prices, higher volumes and better profitability.
Major US stock-market winners
| Company | Approximate change | Principal catalyst |
|---|---|---|
| Paycom | About +19% | Strong results and outlook |
| SoundHound AI | About +12% | Earnings-driven buying and AI interest |
| Albemarle | About +8% | Strong quarterly performance |
| Parker-Hannifin | About +7% | Upbeat profit forecast |
| Motorola Solutions | About +7% | Results exceeded expectations |
| APA Corporation | About +6% | Earnings and higher oil prices |
| SpaceX | About +2% to +3% | Lock-up expiry absorbed without major sell-off |
The list excludes extremely small speculative companies whose percentage gains were considerably larger but were accompanied by unusually high volatility and limited market capitalisation.
SpaceX dominates trading activity
SpaceX was by far the most actively traded major US share, with approximately 190 million shares changing hands during the observed part of the session.
The exceptional volume followed the expiration of the company’s first post-IPO lock-up period. More than 900 million shares held by employees and early investors became eligible for sale.
Investors had feared that the increased supply could cause a substantial decline. Instead, SpaceX gained approximately 2% to 3%, suggesting that buyers were able to absorb the initial selling pressure.
The stock remained below its IPO price and considerably below its recent high, however. Questions also remained about the company’s heavy spending requirements for satellites, launch systems and artificial-intelligence infrastructure.
Most actively traded shares
| Company | Symbol | Observed volume | Approximate change |
|---|---|---|---|
| SpaceX | SPCX | About 190 million | +2.1% |
| UWM Holdings | UWMC | About 71 million | -36.7% |
| Nvidia | NVDA | About 70 million | Near unchanged |
| SoundHound AI | SOUN | About 66 million | +11.7% |
| ClearOne | CLRO | About 59 million | More than +150% |
| Western Digital | WDC | Elevated | About -19% |
| Sandisk | SNDK | Elevated | About -13% |
| Honeywell Aerospace | — | Elevated | About -21% |
Volumes are cumulative and continue increasing until the closing bell. They should not be compared without considering each company’s normal volume and number of shares outstanding.
SpaceX and Nvidia represented substantial institutional trading in major companies. By contrast, ClearOne and several micro-cap stocks recorded enormous percentage movements on speculative activity and carried significantly greater liquidity and volatility risks.
UWM Holdings plunges on exceptionally high volume
UWM Holdings fell approximately 37%, with more than 70 million shares traded.
The combination of a severe price decline and exceptional volume suggested widespread repositioning rather than a small number of isolated trades. The movement placed UWM among both the largest percentage losers and the most active stocks of the day.
As with all unusually sharp post-results declines, investors will assess whether the fall reflects a temporary earnings reaction or a more fundamental reassessment of the company’s outlook.
Oil supports energy shares
Energy stocks benefited from a rise of more than 2% in Brent crude as investors monitored negotiations surrounding Iran and the Strait of Hormuz.
Hopes of a diplomatic agreement had initially encouraged expectations that the important shipping route could reopen under more stable conditions. However, continuing uncertainty and attacks on tankers maintained a geopolitical risk premium in oil prices.
The increase supported APA Corporation, Occidental Petroleum and other US energy producers, although higher crude prices could create additional inflationary pressure for the wider economy.
High-volume stocks reveal a divided market
Thursday’s trading activity reflected three separate themes:
- Post-earnings disappointment: Honeywell Aerospace, Western Digital, Sandisk, Datadog, AppLovin and HubSpot experienced heavy selling.
- Company-specific optimism: Parker-Hannifin, Albemarle, Paycom and Motorola Solutions attracted buyers after encouraging results.
- Exceptional corporate events: SpaceX’s lock-up expiration and UWM Holdings’ collapse generated unusually high turnover.
The distribution of volumes was therefore more informative than the relatively small change in the S&P 500.
A nearly unchanged index concealed losses of 10% to more than 20% in several prominent companies, offset by gains in other earnings-driven shares.
What to watch before the closing bell
Investors will monitor several factors during the remainder of Thursday’s session:
- Whether the Nasdaq can remain close to unchanged as software shares fall.
- Whether the Dow ends its five-session winning streak.
- Whether Honeywell Aerospace stabilises after its initial collapse.
- Whether buyers continue absorbing SpaceX shares released by the lock-up expiration.
- Whether semiconductor gains broaden beyond AMD, Qualcomm and Marvell.
- Whether Western Digital and Sandisk recover from their session lows.
- Whether oil prices extend their advance on Middle East developments.
- Positioning before Friday’s US employment report.
Mid-session market outlook
Wall Street’s moderate index declines conceal an exceptionally active session beneath the surface.
The most significant development is the market’s increasingly severe treatment of disappointing guidance. Strong historical results are no longer enough when share prices already assume rapid and sustained growth.
Honeywell Aerospace, Western Digital, Sandisk, Datadog and AppLovin illustrated that risk. In the opposite direction, Parker-Hannifin and Albemarle showed that investors remain willing to reward companies that exceed expectations and provide credible forecasts.
SpaceX’s extraordinary volume also represents an important test of market demand. The stock’s ability to advance despite the release of hundreds of millions of previously restricted shares is constructive, although its long-term valuation remains highly debated.
With the Dow lower, the S&P 500 slightly negative and the Nasdaq near unchanged, Thursday is not a broad market sell-off. It is instead a highly selective earnings session characterised by violent individual-stock movements and unusually concentrated trading volumes.
Market prices and volumes were observed during the US session and will differ from final closing figures. This article is for informational purposes and does not constitute investment advice.
Sources
- Reuters — S&P 500 struggles for direction as software shares slide — intraday indices, sector performance and principal stock movers.
- Reuters — Sandisk and Western Digital fall despite strong earnings — storage-sector results, forecasts and share-price reactions.
- Reuters — Honeywell Aerospace tumbles after cutting its outlook — earnings, guidance and supply-chain difficulties.
- Stock Analysis — Most actively traded US stocks — cumulative share volumes and market activity.
- Nasdaq — US market activity — intraday market and volume data.
