US stocks took a hit on Thursday as investors shifted away from tech stocks following a surprising drop in consumer prices, causing the S&P 500 to fall back below 5,600. The Dow Jones saw a modest increase, while the Nasdaq Composite experienced a significant drop of almost 2%. Tech giants like Nvidia and Tesla suffered losses, with the entire "Magnificent 7" group having its worst day in almost a year. The cooling inflation numbers prompted investors to turn to Real Estate and Utilities sectors. The Consumer Price Index showed a 0.1% decline last month and a 3.0% increase from the previous year, the slowest rise in consumer prices since 2021. The possibility of the Federal Reserve making interest-rate cuts was further fueled by Fed Chair Jerome Powell's comments, with traders now anticipating a cut by September. The start of another earnings season is imminent, with JPMorgan Chase, Wells Fargo, and Citigroup set to report their second quarter results on Friday.