May 28, 2024

Stocks retreat as tech loses steam

Stocks moved lower on Tuesday as the previous day’s tech rally lost steam after a Samsung profit warning took the shine off the sector.

The Dow Jones Industrial Average (^DJI) slipped 0.6% or more than 200 points. The benchmark S&P 500 (^GSPC) shed 0.4% while the tech-heavy Nasdaq Composite (^IXIC) retreated about 0.4%.

Samsung’s update weighed on hopes for a rebound in the PC and mobile sector, a key market for its memory chips. The Korean company said it expects a 35% drop in fourth-quarter operating income, far short of estimates, as demand continues to lag.

Big Tech helped carry stocks higher on Monday, as the Dow shook off a plunge in Boeing (BA) shares after a malfunction on a 737 Max 9 jet. Shares in the carrier fell slightly Tuesday even as Alaska (ALK) and United Airlines (UAL) said they had found loose parts in an inspection check.

The key focus for investors remains the December consumer inflation reading due Thursday and what it could mean for the chances of easing interest rates. But two Federal Reserve officials on Monday poured cold water on Wall Street’s already fading expectations that a cut could come in the next few months.

The idea that inflation is cooling underpins investors’ belief that the US economy will skirt recession. That conviction faces a crucial test on Friday, when big banks kick off the fourth-quarter earnings season.

Meanwhile, oil prices (CL=F) (BZ=F) rose over 1%, recouping some of Monday’s near 4% fall as investors weighed the impact of tensions in the Middle East and Saudi Arabia’s decision to cut crude prices.

Live2 updates

  • Stocks trending in morning trading

    Here are some of the stocks leading Yahoo Finance’s trending tickers page during trading on Tuesday:

    Juniper Networks (JNPR): Shares of the networking supplier rose more than 20% Tuesday morning following a report in the Wall Street Journal that revealed Hewlett Packard Enterprise (HPE) is eyeing to acquire the company in a deal that could be valued at $13 billion. Hewlett Packard shares fell more than 8%.

    JetBlue (JBLU): The airline sank more than 6% following an announcement that Robin Hayes will step down as CEO after about 9 years of leading the company. His departure carries significance because the company is waiting to hear whether a federal judge will block its proposed merge with Spirit Airlines, a deal he backed.

    Unity Software (U): Shares of the video game developer fell almost 7% after the company announced plans to lay off about 1,800 employees, or 25% of its workforce.

    Nvidia (NVDA): Shares of the AI software and hardware supplier continues their run on Tuesday morning as shares rose 0.3% following a report that the AI supplier plans to begin mass production of an AI chip it designed for the Chinese market that complies with US export regulations. Reuters reports that the sale of the chip, along with two others, is designed preserve the company’s market share in the China amid tightening export restrictions out of Washington.

  • Stocks open lower as tech rally loses steam

    The market opened in the red to start the Tuesday session on Wall Street as tech stocks gave up ground.

    The Dow Jones Industrial Average (^DJI) slipped 0.5% or about 200 points. The benchmark S&P 500 (^GSPC) shed nearly 0.6% while the tech-heavy Nasdaq Composite (^IXIC) retreated about 0.7%.

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