US Stock Market Volatility as Tech Stocks Weigh Down Indices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
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Source: NASDAQ.COM
- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
- Chip Demand Recovery: Sandisk's stock rose over 7% following Kioxia's forecast of strong demand for NAND memory chips, indicating growth potential in the AI infrastructure sector, which may create new investment opportunities for related companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
