Chip Stocks Drop Leads S&P and Nasdaq Lower Before Key Inflation Update
On Wednesday, March 13, U.S. stocks mostly fell. Investors sold shares of Nvidia and other semiconductor companies.
They waited for producer price data from the U.S. on Thursday. This data will offer new clues on inflation before the Federal Reserve meets next week.
The Philadelphia semiconductor index went down by 2.5% after a period of significant gains.
Still, it has grown by 17% since the start of the year. Shares of Nvidia, a leader in the recent rise due to excitement over artificial intelligence, slipped by 1.1%.
Shares of Intel went down by 4.4%. Reports surfaced that the Pentagon scrapped a plan to invest up to $2.5 billion in a grant for the firm.
Thursday’s release of the U.S. producer price data for February could shine a light on inflation trends.
Despite expectations for the U.S. central bank to maintain current interest rates at its next meeting, market participants see a 65% chance of a rate cut in June.
This is based on predictions from the CME Group’s FedWatch tool.
Chip Stocks Drop Leads S&P and Nasdaq Lower Before Key Inflation Update
The Dow Jones edged up by 0.10%, reaching 39,043.32 points. The S&P 500 dropped by 0.19% to 5,165.31 points.
The Nasdaq tech index decreased by 0.54%, to 16,177.77 points.
Tuesday’s consumer price data, slightly above forecasts, did not weaken the anticipation of rate reductions in the near future.
This matters because it shows the delicate balance markets maintain between growth prospects and inflation concerns.
It highlights how upcoming financial data and decisions from the Federal Reserve can significantly impact stock movements, especially in technology and manufacturing sectors.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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