Wall Street was currently buried in the sea of red with Dow, Nasdaq & S&P500 fell following tech sector continue to decline, led lower by weakness in chip stocks. Declines in Tesla, Nvidia and Broadcom dragged the overall sentiment lower. Besides that, investors also remained cautious of placing bullish bets ahead of inflation report on …
Wall Street was currently buried in the sea of red with Dow, Nasdaq & S&P500 fell following tech sector continue to decline, led lower by weakness in chip stocks. Declines in Tesla, Nvidia and Broadcom dragged the overall sentiment lower. Besides that, investors also remained cautious of placing bullish bets ahead of inflation report on Thursday. The Dow shed 0.54% to 35123.36, Nasdaq fell 1.17% to 13722.02 while S&P lost 0.70% to 4467.71 during Asian session.
On stock front, the decline in chip stocks was driven by NVIDIA Corporation (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), and Qualcomm Incorporated (NASDAQ:QCOM). Qualcomm was particularly hit hard after Daiwa Capital lowered its rating on the chipmaker to buy from outperform due to concerns regarding tweaker demand. In the third quarter, Daiwa Capital identified a number of challenges, including sluggish consumer demand, particularly in China, and excessive inventory levels.
On the other hand, other big tech such as Apple, Microsoft and Meta also struggled to reduce losses and keeping the sector on the defensive as investors remain wary of bullish bets ahead of inflation data on Thursday. The next inflation numbers are likely going to show yet another indicator that the goods sector is still under deflationary pressure due to decline in used vehicle prices. According to Morgan Stanley, the headline CPI climbed by 0.19% in July and 3.3% over the course of the previous 12 months.
Further signs of an easing inflation would probably fuel hope that the Federal Reserve may not resume rate hike later this year. Managing Partner at MRB Partners, Phillip Colmar stated that the market had run up a lot and currently it’s a bit of wait-and-see, digestion phase.
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