Stock market today: Dow, S&P 500 slip as tech continues bleed ahead of CPI
Investing.com — The S&P 500 fell Wednesday after chip stocks dragged tech lower as investors continued to rein in bullish bets ahead of Thursday inflation report.
The S&P 500 fell 0.2%, the Dow Jones Industrial Average fell 0.04%, or 14 points, Nasdaq fell 0.6%.
NVIDIA Corporation (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), and Qualcomm Incorporated (NASDAQ:QCOM) led chip stocks lower, with the latter coming under pressure after Daiwa Capital downgraded its rating on chipmaker to buy from outperform, citing worries about tweaker demand.
Daiwa Capital flagged several issues that were evident in the third quarter including weak consumer demand, particularly in China, and high inventory levels.
Big tech including Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc Class A (NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META) struggled to cut losses, keeping tech on the backfoot as investors remain wary of bullish bets ahead of inflation data due Thursday.
The upcoming in inflation data are likely to point to another sign that deflationary pressure in the goods sector persist, driven by a fall in used car prices, Morgan Stanely said, estimating headline CPI increased by 0.19% in July and 3.3% in the 12 months through July.
Further signs that inflation is cooling will likely stoke optimism that the Federal Reserve may not resume rate hikes later this year.
LYFT Inc (NASDAQ:LYFT) fell more than 8% as margin concerns offset the ride-sharing company’s better-than-expected second-quarter results.
Still, some Wall Street gave the ride-sharing company the vote confidence, citing improved driver supply.
“Things feel more positive than negative at LYFT: pricing & driver supply are getting where they need to be,
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