Tech stocks drag on Nasdaq, S&P 500 as caution reigns ahead of Fed decision
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple falls after analyst flags weak demand for new iPhones
Intel rises after report chipmaker qualifies for federal grants
Boeing dips after it freezes hiring, weighs temporary furloughs
Indexes: Dow up 0.16%, S&P 500 down 0.23%, Nasdaq down 0.83%
Updated at 11:38 a.m. ET/1538 GMT
By Johann M Cherian and Purvi Agarwal
Sept 16 (Reuters) - Technology stocks weighed on the Nasdaq and the S&P 500 onMonday as prudent investors awaiteda pivotal monetary policy decision from the Federal Reservelater in the week and most traders priced in a steep reduction inborrowing costs.
Rate-sensitive chip stocks fell, with Nvidia NVDA.O, which led much of this year's rally, down 2%, Broadcom AVGO.O losing 3.4% and Qualcomm QCOM.O dropping 1.5%, sending the Philadelphia SE Semiconductor index .SOX lower by 2%.
Other growth stocks also took a hit. Apple AAPL.O slid 3% after an analyst at TF International Securities said demand for its latest iPhone 16 models was lower than expected.
Amazon.com AMZN.O lost 1%, while Tesla TSLA.O fell 0.30%.
"Investors are lowering risk exposure ahead of the Fed decision. The market is just being a bit more pragmatic and letting go of technology," said Andre Bakhos, managing member at Ingenium Analytics.
At 11:38 a.m. the Dow Jones Industrial Average .DJI rose 64.71 points, or 0.16%, to 41,458.49, the S&P 500 .SPX lost 13.14 points, or 0.23%, to 5,612.88 and the Nasdaq Composite .IXIC lost 146.18 points, or 0.83%, to 17,537.79.
Seven of the 11 S&P 500 sectors edged higher. Financials .SPSY rose 0.90%, while rate-sensitive tech stocks .SPLRCT were the biggest laggards, shedding 1.2%.
Markets have ralliedsince 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 less than 1% from its own milestone.
The benchmark index and the tech-heavy Nasdaq .IXIC had notched up theirbiggest 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 and comments 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.
"The key is the talk and rhetoric around the cut. How the Fed is going to address the macro picture and what will investors take away from that. You're going to get a market that's relatively quiet until then," Bakhos said.
Intel Corp INTC.O climbed 3.4% after a report showed itqualified for as much as $3.5 billion in federal grants to make semiconductors for the U.S. Department of Defense.
Boeing BA.N dipped 1.3% after the planemaker said it wasfreezing hiring and weighing temporary furloughs in the coming weeks as its workers' strike stretched to its fourth day.
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 1.64-to-1 ratio on the NYSE, and by a 1.07-to-1 ratio on the Nasdaq.
The S&P 500 posted 79 new 52-week highs and one new low, while the Nasdaq Composite recorded 111 new highs and 45 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
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
