Wall Street is in decline, weighed down by technology

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New York (AFP) – The New York Stock Exchange fell hesitantly after Tuesday’s open as the technology sector, especially semiconductors, pushed the market lower.

The Dow Jones added 0.10% and the S&P 500 added 0.45% while the Nasdaq fell 1.37%.

During weak trading on Monday, the Dow Jones rose 0.09% to 32,832.54, the Nasdaq shed 0.10% to 12,644.46 and the S&P 500 shed 0.12% to 4,140.06. .

“Doomsday warnings from semiconductor makers are impacting technology” at the open, Wells Fargo analysts said, as investors also anticipated inflation.

On Wednesday, the US Department of Labor is due to release its July CPI and Thursday’s Producer Price Index, which could set the tone for the Federal Reserve’s (Fed) future stance.

“The market is fluctuating ahead of Wednesday’s CPI report, which will shape inflation views and possible policy responses,” Briefing.com’s Patrick O’Hara said.

Analysts’ forecasts are betting on a slowdown in price growth to +0.2% m/m compared to +1.3% in June and 9.1% y/y, which may finally mean that inflation has reached its peak.

However, in the bond market, Treasury bill yields were aiming for 2.80% at ten-year rates, up from 2.75% a day earlier.

On Tuesday, the Nasdaq was affected by a gloomy forecast released by Micron Technology (-2.40%), which warned that its quarterly earnings could fall below its forecasts.

The group anticipates a drop in demand for memory from its customers due to economic uncertainty, while continued supply difficulties disrupt the company’s inventory management.

At the same time, an American memory and semiconductor manufacturer based in Boise, Idaho, announced plans to invest $40 billion in US factories by 2030. The investment is part of the company’s $150 billion funding plan already announced last year. in the world.

The announcements come as President Joe Biden signs the “chip” bill on Tuesday to provide subsidies to resurrect semiconductor manufacturing in the United States, freeing up $50 billion.

The nasdaq, with its strong technology coloring, also suffered from a poor outlook for Nvidia, another semiconductor manufacturer specializing in graphics cards in particular. The day before, Nvidia warned that a “significant slowdown from video games” is expected in the second quarter.

Another major player in video games, US publisher Take-Two Interactive (Grand Theft Auto), which bought out mobile game developer Zynga at a high price earlier in the year, was clearly hesitant (-4.58%) after announcing well-below first-quarter results.

A good half of the S&P’s eleven sectors were in the red, with discretionary consumer spending (-1.75%) and IT (-1.30%) lagging behind.

Energy, for its part, was in the lead (+2.32%), and oil prices, which had begun to fall, began to rise again on the news that Russian oil supplies through Ukraine were cut off. Chevron, ExxonMobil added more than 2%.

Covid-19 vaccine developer Novavax, listed on Nasdaq, fell 30% to $39.66. The group announced on Monday after the close that it had sharply cut sales prospects for 2022 due to unsatisfactory demand for its vaccine.

Novavax posted a $510 million loss in the second quarter, compared to a $352 million deficit a year earlier.