The Dow Jones fell almost one percent or 330 points, the S&P 500 lost 0.6%, while the Nasdaq Composite proved to be the underperformer, down 1.1%. Traders are now eagerly awaiting PCE core inflation data to be released later this evening.
Losses were led by Salesforce, which fell 20% after missing revenue estimates for the quarter and also providing a weak outlook. This was the company’s worst session since 2004.
Street darling NVIDIA also ended a four-day losing streak, during which it gained 21%. The stock ended 4% lower after U.S. authorities slowed issuing licenses to chipmakers for large-scale shipments of AI accelerators to the Middle East, according to a Bloomberg report.
Shares of Dell Technologies also fell after revenue growth failed to impress investors.
Despite the fall in the S&P 500, more than 360 stocks ended with gains, marking the weakness of the index’s heavyweights. For this week, the S&P 500 is now down 1.3%, while the Nasdaq is down 1.1%, putting both on track to end their respective five-year winning streak. weeks. The Dow, however, fell more than 2% and is on track for a second consecutive weekly loss.
For the month of May, however, the Nasdaq rose 7%, while the S&P 500 gained 4%. The Dow rose a modest 0.8%.
The yield on the 10-year Treasury note remained above 4.5%, which is generally considered bad for stocks. Higher yields do not bode well for stocks as investors have chosen to place their funds in safer and more attractive Treasurys and money market funds. The two-year rate also fell five basis points to 4.92%.
Traders are now eagerly awaiting the release of the Personal Consumption Expenditure Price Index for April, which will be released later today. This is the Fed’s preferred indicator for measuring inflation. This figure is estimated at 2.7% for April, still above the central bank’s 2% target.
“The game remains inflation and interest rates,” said Chris Larkin at Morgan Stanley’s E*Trade. “Stay tuned for tomorrow’s PCE Price Index release, as it could dominate market sentiment until next Friday’s jobs report.”
With contributions from agencies.
cnbctv18-forexlive
