Tech stocks drag on S&P 500, Nasdaq as Fed meeting nears
Apple falls after analyst flags weak demand for new iPhones
Intel rises after report chipmaker qualifies for federal grants
Dow hits intraday record high
Indexes: Dow up 0.63%, S&P 500 down 0.02%, Nasdaq down 0.68%
Updated at 09:50 a.m. ET/1350 GMT
By Johann M Cherian and Purvi Agarwal
Sept 16 (Reuters) - Technology stocks weighed on the S&P 500 and the Nasdaq on Monday as caution set in ahead of the Federal Reserve's pivotal monetary policy decision, due later in the week, with a majority of traders pricing in a steep reduction in borrowing costs.
Rate-sensitive chip stocks fell, with Nvidia NVDA.O, which led much of this year's rally, down 2%, Broadcom AVGO.O dropping 2.2% and Qualcomm QCOM.O losing 1.5%, sending the Philadelphia SE Semiconductor index .SOX lower by 1.7%.
Other growth stocks also took a hit. Amazon.com AMZN.O lost 0.70% and Tesla TSLA.O fell 1.7%. Apple AAPL.O slid 3.2% after an analyst at TF International Securities said demand for its latest iPhone 16 models was lower than expected .
Markets have been in a bull run since the start of this year on expectations the world's most influential central bank would kick off its monetary policy easing cycle soon.
The Dow .DJI hit an intraday record high and the S&P 500 .SPX is just shy of its own milestone.
The benchmark index and the tech-heavy Nasdaq .IXIC notched their biggest weekly jumps in about 11 months on Friday, although analysts attributed the optimism to signs of a robust economy rather than rate-cut expectations.
Following a diverse batch of economic reports andcomments from a former policymaker in the last few weeks, traders swayed in their bets on what decision the central bank would arrive at during its Sept. 17 to 18 meeting.
Odds for a 50-basis-point cut are at 61% from 30% a week ago, according to the CME FedWatch Tool, which showed a 39% probability of a25-basis-point reduction. There is concern that anoutsized move could mean the Fed sees the economy cooling at a faster-than-anticipated pace.
"Influential investors have been talking about the need for a 50-basis-point cut and we're seeing increased talk of recession risks. As a result, there's betting that we will get something other than the 25-bps cut," said Sam Stovall, chief investment strategist at CFRA Research.
"It would be a good thing for the Fed to imply that they are ahead of the curve."
At 09:50 a.m. the Dow Jones Industrial Average .DJI rose 260.54 points, or 0.63%, to 41,654.32, the S&P 500 .SPX lost 1.70 points, or 0.02%, to 5,625.06 and the Nasdaq Composite .IXIC lost 123.01 points, or 0.68%, to 17,564.41.
Seven of the 11 S&P 500 sectors gained, although rate-sensitive tech stocks .SPLRCT declined 1.2%, while banks .SPXBK rose 0.70%.
Amongother movers,Intel Corp INTC.O climbed 2.7% after a report showed the chipmaker has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the U.S. Department of Defense.
In economic data, reports on retail sales, weekly jobless claims, housing starts and industrial production are due through the week.
Advancing issues outnumbered decliners by a 2.03-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq.
The S&P 500 posted 75 new 52-week highs and one new low, while the Nasdaq Composite recorded 84 new highs and 24 new lows.
US rates have risen but unemployment has stayed low https://reut.rs/3zh65D1
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
