S&P 500 Gains and Losses Today: Accenture, Gartner Stocks Pressured by Government Spending Cuts

Major U.S. equities indexes slipped on Thursday, unable to add to gains posted a day earlier after the Federal Reserve said benchmark interest rates would remain at current levels. Although policymakers maintained their projections for two rate cuts this year, Fed officials struck a cautious tone about inflation and the economy.

The S&P 500 slid 0.2%. The Nasdaq lost 0.3%, while the Dow ended the session with a loss of less than 0.1%.

Accenture (ACN) stock tumbled 7.3%, falling the most of any S&P 500 stock, after the professional services firm missed sales and profit estimates for its fiscal second quarter. Julie Sweet, CEO of the consulting firm, noted a negative revenue impact from the Trump administration’s focus on reducing government spending. Heading into the earnings release, analysts at Jefferies and Morgan Stanley had cut their price targets on Accenture stock, citing a cautious outlook among the firm’s clients and softness in discretionary spending.

Research and advisory firm Gartner (IT) also faces headwinds related to government efficiency measures and spending cuts. On Wednesday, UBS analysts lowered their price target on Gartner stock, noting that a choppy business environment could weigh on revenue growth for the services provider, particularly in its government-facing business. Gartner shares dropped 6.8% today.

Microchip Technology (MCHP) shares fell 6.5%. The semiconductor maker enlisted financial services firm Macquarie Group to help with the sale of a manufacturing facility in Tempe, Ariz. In addition, Microchip announced an offering of $1.35 billion in convertible stock, prompting the ratings agency Moody’s to downgrade its rating on the company’s senior unsecured debt.

Shares of Darden Restaurants (DRI) jumped 5.8%, marking the S&P 500’s top daily performance, after the parent company of LongHorn Steakhouse released results for its fiscal third quarter. Although quarterly sales fell shy of estimates, adjusted earnings matched forecasts, and Darden’s CEO said the company expects customers to continue spending on dining out despite the uncertain economic environment. The company also expanded its partnership with Uber (UBER), announcing a pilot program to offer Uber Eats deliveries from 10 Cheddar’s Scratch Kitchen restaurants.

Electronics manufacturer Jabil (JBL) posted better-than-expected quarterly sales and profits, and its shares rose 3.1%. The circuit board maker touted strength across various markets, including cloud and data center infrastructure. Jabil also lifted its full-year sales and profit guidance as robust artificial intelligence demand drives sales of its semiconductor fabrication and testing equipment.

Allstate (ALL) shares gained 2.6%, notching a record high following the publication of the insurer’s monthly results for February. The company estimated its catastrophe losses for the month at $92 million, a sharp decline from more than $1 billion in estimated catastrophe losses in the previous month that reflected the impact of the devastating wildfires in California. The firm also reported a slight month-over-month uptick in Allstate Protection policies in force.