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Nasdaq declines as US export controls on China weigh on chip stocks By Reuters

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© Reuters. A trader works at the New York Stock Exchange (NYSE) in New York City, US, October 7, 2022. REUTERS/Brendan McDermid

By Shreeshi Sanyal and Bansari Mayor Kamdar

(Reuters) – The Nasdaq hit a two-year low on Monday as chipmakers bore the brunt of US efforts to cripple China’s semiconductor industry, while caution prevailed ahead of earnings season.

The price fell 3.5% to also touch a two-year low, after the Biden administration published a raft of export controls on Friday, including a measure to cut China off some semiconductor chips made anywhere in the world with US equipment.

Some of the largest components of the index including Nvidia (NASDAQ 🙂 Corp, Qualcomm (NASDAQ :), Micron Technology Inc (NASDAQ :), and Advanced Micro Devices (NASDAQ :)) fell between 1.13% and 3.65%.

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Major US banks are preparing to start their third-quarter earnings season in earnest on Friday, amid concerns about the impact of inflationary pressures, rising interest rates and geopolitical uncertainties on their earnings.

It is estimated that corporate earnings will now rise 4.1% for the last three months, down from an 11.1% increase expected at the beginning of July, with more analysts expecting a dip next year, according to Refinitiv data.

“We’re entering earnings season now, so there is some concern about continued weakness as we saw in the second quarter,” said Jonathan Witt, fund manager and chief equity analyst at Frost Investment Advisors.

Wall Street fell sharply on Friday after the strong jobs report for September raised the possibility that the US Federal Reserve will stick to its aggressive campaign to raise interest rates and potentially push the US economy into recession.

Chicago Federal Reserve President Charles Evans on Monday joined the chorus of other central bankers supporting the Fed’s attempt to bring down inflation without a sharp rise in unemployment even as it continues to raise interest rates.

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“We had a very sharp downturn on Friday, and there is very little change in the picture from the Fed’s perspective on inflation or how fast interest rate hikes can continue,” said Randy Frederick, managing director of trading and derivatives at Schwab Center.

“So the volatility will be there until at least we get to the November 2 (Fed) meeting and maybe a week later when the midterms arrive.”

Money markets are pricing in an 89% chance of another 75 basis point increase at the Federal Reserve’s November meeting.

Investors are also looking forward to inflation reports during the week, including consumer price data, which is expected to have risen last month.

At 12:01 PM ET, it was down 54.42 points, or 0.19%, at 29242.37, the S&P 500 was down 21.12 points, or 0.58%, at 3618.54, and it was down 101.64 points, or 0.95%, at 10,550.77.

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tech giant Microsoft Corporation (NASDAQ: down 2.22%, impacting the S&P 500 technology sector index by 1.6%.

The US bond market was closed for the Columbus Day holiday on Monday.

Declining issues outnumbered advanced stocks by 1.64 to 1 on the New York Stock Exchange and 1.68 to 1 on the Nasdaq.

The S&P recorded a new 52-week high and 49 new lows, while the Nasdaq recorded 38 new highs and 351 new lows.

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Elon Musk of Tesla congratulates Big Rival Ford

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Elon Musk and Tesla changed the way consumers think and look.

They have pushed the entire auto industry to switch to electric vehicles and make the technology the future of the sector, which is crucial to the economy.

Today, nearly every automaker—vintage automakers, start-ups, luxury brands, sports car manufacturers—offers an electric or hybrid model. Groups are investing billions of dollars to develop electric vehicles.

Consumers are also following developments, since their demand for these green vehicles is rising sharply even as cars remain expensive and the number of charging stations continues to lag. Charging still takes a long time, and electric vehicle owners have to plan their trips according to the geography of charging stations, which is a particular problem.

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Financials and Materials Drive TSX Higher By Reuters

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© Reuters. FILE PHOTO: Screen showing the price of a major Canadian stock index, the S&P/TSX Composite Index of the Toronto Stock Exchange, as it rose to a record high in Toronto, Ontario, Canada on January 7, 2021. REUTERS/Chris Helgren

(Reuters) – The main Canadian stock index rose on Thursday, supported by financial stocks and commodity-related commodities, while Canadian manufacturing data for November rose from the previous month.

At 09:33 AM ET (1433 GMT), the S&P/TSX Composite Index of the Toronto Stock Exchange rose 104.98 points, or 0.51%, at 20,558.24, approaching a six-month high.

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The Fed’s measure of inflation slowed in October, supporting the dovish Powell

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The Federal ReserveUS preferred scale inflation Data released on Thursday slowed back October, adding more support to President Jerome Powell’s signal of a near-term interest rate hike after his closely watched speech yesterday in Washington.

The essence of September PCE The price index is up 5% from a year ago, down from the 5.1% pace recorded in September and basically in line with Street expectations of 5%. The Bureau of Economic Analysis reported that the core index rose 0.2% in the month, a significant drop from September that fell within analysts’ expectations.



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