With Materials (XLB) down 1.6%, this looks like a sector-led move rather than a company-specific surprise.
The materials sector is trading significantly lower today, primarily driven by negative guidance from key steel producers Nucor and Steel Dynamics, which has raised concerns about demand and profitability in the industry. This follows a recent trend of underperformance in some materials stocks. Compounding the issue, the latest ISM Manufacturing PMI data, while still showing expansion, indicated a notable increase in the prices paid by manufacturers, suggesting rising input costs that could squeeze margins. Broader macroeconomic headwinds, including surging Treasury yields to multi-decade highs, are also weighing on cyclical sectors like materials.