S&P 500 Falls Over 1% As Banks And Homebuilders Hold Up

Tuesday looked like a rough day for stocks. But it was not rough for all of them.

The S&P 500 opened higher, then dropped more than 1%. Banks, homebuilders, and health care stocks still closed green.

The Old-Economy Trade Held Up

The big index fell, but the steady corners held up. A bank fund rose about 1%, and a health care fund gained 0.7%.

Homebuilders did even better. They climbed more than 2% on the day.

That is a wide gap from the broad market, which fell more than 1%. When the tide goes out, not every boat sinks.

Tuesday, the boring names stayed afloat. The flashy ones took the hit.

Defensive stocks tend to win on shaky days. People still bank, see doctors, and buy homes, good market or bad.

This kind of split gets lost in a one-line recap. But it tells you where money felt safe.

Every morning, Market Briefs breaks down which sectors are actually moving - in five minutes, plus a free investing masterclass when you sign up.

Housing Just Had Its Best Month Since December

Homebuilders had a good reason to rise. Existing home sales jumped 3.2% in May.

That was the most since December. It also beat what economists expected.

Sales hit a yearly pace of 4.17 million homes. That topped the rate forecasters had penciled in.

The typical home sold for a record $429,300. Buyers keep showing up, even with high prices.

Here is the nice part. The price gain stayed below inflation, so homes got a touch easier to afford.

More people buying and selling homes helps the whole economy. It is not just good for builders.

A Few Other Things Moved The Tape

There was deal news too. Drugmaker Nuvalent jumped about 39%.

Britain's GSK agreed to buy it for $10.6 billion. That is a big bet on cancer drugs.

The trade gap also shrank. It fell 49% from a year ago as new tariffs reshaped imports.

That is a huge swing. Still, it did little to lift stocks on the day.

Apple drew a cool response too. Its developer event leaned on a smarter Siri, and Wall Street shrugged.

Smucker, the jam and peanut butter maker, beat estimates and rose. Software firm SailPoint sank on a weak outlook.

Overseas, the mood was brighter. South Korea's main index jumped 8% as chip stocks bounced back.

China's exports surged too, up about 19% in May. Shipments to the US jumped the most in five years.

What To Watch

The bigger story this week sits outside the charts. SpaceX is about to go public.

Its IPO prices Thursday, and shares start trading Friday. A debut that big can swing the whole market.

So expect more up-and-down days until it is done. OpenAI also filed to go public this week.

That adds to a busy stretch for new stocks. Tuesday the boring stocks won, but this week the spotlight turns to the flashiest debut in years.

Markets stayed jumpy all week as traders waited on the debut. A fragile Iran-Israel ceasefire kept nerves high too.

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