ROUNDUP/New York stocks: Tech stocks fall – inflation remains in view | 8/9/22

NEW YORK (dpa-AFX) – On Tuesday, investors continued to act cautiously on the US stock market after the mixed start to the week. Interest-sensitive technology stocks in particular came under pressure again. The tech index NASDAQ 100 lost 0.85 percent to 13,047.07 points in the first half hour after the start. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) was almost unchanged at 32,828.77 points. The market-wide S&P 500 was 0.21 percent lower at 4131.24 points.

A day ahead of the release of much-publicized US CPI data for July, investors tend to be risk-averse. Economist Tiffany Wilding from asset manager Pimco assumes that core inflation excluding the volatile components of energy and food will weaken month-on-month compared to the alarmingly high value of the previous month. However, the analyst expects firm core inflation and rising unit labor costs to confirm the strength of underlying inflationary pressures.

In the US, inflation is currently well above the Fed’s target of two percent. Recently, US central bankers had repeatedly indicated that interest rates would continue to rise. However, there are also fears that higher interest rates will have a significant impact on the economy. In such a scenario, the strongly growth-oriented technology companies in particular would suffer from high financing costs.

Meanwhile, the US law to promote semiconductor production is bearing its first fruits: Industry heavyweight Micron (Micron Technology) wants to invest billions in memory chip production in the USA. However, the company also warned that the fourth fiscal quarter revenue guidance could be missed given the challenging market environment. The shares lost 3.7 percent.

Novavax (Novavax) fell by a quarter after the vaccine maker slashed its sales guidance for this year. Expectations for the Covid-19 vaccine were missed, with demand declining both in the US and globally.

In the Dow, the shares of the oil company Chevron took the lead in early trading with a plus of 2.2 percent. At the end of the index were the titles of the sporting goods manufacturer Nike with minus 3.2 percent./ajx/he


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