NEW YORK >> Wall Street’s split widened Thursday, as smaller stocks and other formerly downtrodden areas of the market rose up while superstar Big Tech stocks gave back more of their stellar gains.

A swirling day of trading left the S&P 500 with a loss of 0.5% following its slide from the day before, which was its worst since 2022 and led to a wipeout for financial markets around the world.

The Dow Jones Industrial Average rose 0.2%, while the Nasdaq composite sank 0.9%.

All told, the S&P fell 27.91 points to 5,399.22. The Dow rose 81.20 to 39,935.07, and the Nasdaq composite sank 160.69 to 17,181.72.

Weighing on Wall Street were continued losses for Nvidia and most of the handful of Big Tech stocks that have been primarily responsible for the S&P 500’s run to records this year. They had tumbled a day earlier after profit reports from Tesla and Alphabet underwhelmed and raised concerns that the market’s frenzy around artificial-intelligence technology had sent prices too high.

Whether the handful of stocks known as the “Magnificent Seven” are rising or falling makes a huge impact on Wall Street because they’ve grown so mammoth in market value. That gives their stock movements extra sway on the S&P 500 and other indexes.

But Thursday’s drops for six of the Magnificent Seven masked a market where the majority of U.S. stocks rallied. A surprisingly strong report on the U.S. economy raised hopes for profits at smaller stocks and other formerly unloved areas of the market.

It’s a flip of the leaderboard from earlier this year, when strength for Big Tech masked weakness for other stocks, which struggled with high interest rates meant to get inflation under control.

The economy’s growth accelerated to an estimated 2.8% annual rate from April through June, double the rate from the prior quarter. A continuation would help drive more sales for companies. Perhaps just as importantly for Wall Street, the report wasn’t so hot that it fanned worries about upward pressure on inflation.

An update on Friday about the Federal Reserve’s preferred measure of inflation could shake things up, but “it’s a struggle to find data points or indicators that hint at inflation still being a significant concern,” according to Yung-Yu Ma, chief investment officer at BMO Wealth Management.

Because inflation has largely resumed its slowdown, the widespread expectation is for the Federal Reserve to begin cutting its main interest rate from the highest level in more than two decades. Following Thursday’s report, traders still see a 100% probability that the Fed will begin doing so in September, according to data from CME Group.

Cuts to rates would release pressure that’s built up on both the economy and financial markets, and investors are thinking it could offer a particularly big boost to smaller stocks and other downtrodden areas whose profits are more closely tied to the strength of the economy than Big Tech’s.

The Russell 2000 index of smaller stocks jumped 1.3%, doing better than other market indexes. It’s up 8.6% this month, versus a loss of 1.1% for the big stocks in the S&P 500.

In the bond market, the yield on the 10-year Treasury slipped to 4.24% from 4.28% late Wednesday. It’s down significantly from its perch of 4.70% reached in April, which gives a strong boost to stock prices.

IBM was one of the biggest reasons for the Dow Jones Industrial Average’s climb, and it rose 4.3% after delivering stronger profit and revenue than expected for the last quarter. It also raised its forecast for how much cash it will generate this year, saying its AI business has been strong.