Stock Market Today: Dow slides as sea of red in tech persists; inflation data eyed
Investing.com — The Dow fell Wednesday as the slide in tech continued, paced by weakness in chip stocks as investors remained wary of making bullish bets ahead of Thursday inflation report.
The Dow Jones Industrial Average fell 0.5%, or 191 points, Nasdaq fell 1.2%, and the The S&P 500 fell 0.7%.
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 810% 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
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