Nasdaq Falls as Chipmaker Micron Warning Sparks Tech Defeat

Spread the love

Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 8, 2022. REUTERS/Andrew Kelly

Sign up now for FREE unlimited access to

  • Micron tempers forecast as demand weakness deepens
  • Novavax drops 25% after cutting revenue view in half
  • Mixed indices: Dow flat, S&P down 0.23%, Nasdaq down 0.94%

Aug 9 (Reuters) – The tech-heavy Nasdaq fell on Tuesday after a gloomy forecast from Micron Technology dragged chip and technology stocks lower, while investors remained cautious on inflation data to be added. to the US Federal Reserve’s rate hike plans.

High inflation on Wednesday, following last week’s strong jobs numbers, will likely push the Fed to continue with giant rate hikes and weigh on the recent rally in stocks.

Traders see a 70% chance the Fed will raise interest rates by 75 basis points in September, its third big hike. IRPR

Sign up now for FREE unlimited access to

Rate-sensitive growth and tech stocks fell as US Treasury yields rose, with mega-caps such as Alphabet Inc (GOOGL.O) and Tesla Inc (TSLA.O) falling more than 1% each. .

Three of the 11 major S&P 500 sectors fell in early trading, with consumer discretionary (.SPLRCD), information technology (.SPLRCT) and communication services (.SPLRCL) stocks down between 0.8% and 1.4%.

Micron Technology Inc (MU.O) fell 2.4% as the memory chip maker cut its fourth-quarter revenue forecast and warned of negative free cash flow in the following quarter due to falling demand. demand for chips used in personal computers and smartphones. read more

The broader Philadelphia Semiconductor Index (.SOX) declined 2.8% for the third straight session, while peers Nvidia (NVDA.O) and Advanced Micro Devices (AMD.O) fell more than 2% each, extending the previous session’s heavy losses after an earnings warning from Nvidia.

“Markets continue to treat these things as company-specific. If you get enough similar warnings, investors will start treating it as sector-specific, and if it continues, it will become market-specific,” said Michael Shaoul, CEO of Marketfield. .

Shaoul said trading volumes remained lower due to the summer and “you don’t really need a lot of capital to boost yields or the S&P.”

As of 9:41 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 10.35 points, or 0.03%, at 32,842.89, the S&P 500 (.SPX) was down 9.53 points, or 0.03% 0.23% to 4,130.53, and the Nasdaq Composite (.IXIC) fell 118.43 points, or 0.94%, to 12,526.03.

Despite a choppy recovery since mid-June, the benchmark (.SPX) is down 13.4% this year after hitting an all-time high in early January on rising prices, aggressive central banks and geopolitical tensions weighing on confidence.

Stronger-than-expected earnings from US companies have been positive, with 77.5% of S&P 500 companies beating earnings estimates, according to Refinitiv data on Friday.

US vaccine maker Novavax (NVAX.O) plunged 25.3% after halving its annual revenue forecast as it does not expect more sales of its COVID-19 vaccine this year in the US in amid global oversupply and weak demand. read more

Down issues outnumbered advances by 1.28 to 1 on the New York Stock Exchange and 1.96 to 1 on the Nasdaq.

The S&P index posted two new 52-week highs and 30 new lows, while the Nasdaq posted 22 new highs and 17 new lows.

Sign up now for FREE unlimited access to

Information from Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Edited by Saumyadeb Chakrabarty and Arun Koyyur

Our standards: the Thomson Reuters Trust Principles.

#Nasdaq #Falls #Chipmaker #Micron #Warning #Sparks #Tech #Defeat

Leave a Comment

Your email address will not be published.