Major U.S. stock indexes were down in early-afternoon trading Thursday, after giving back early-session gains, as technology stocks came under selling pressure again.
The Nasdaq Composite was down 0.9%, after posting its biggest one-day loss since late 2022 the previous session, while the S&P 500 slid 0.7%. Losses in recent sessions have been spurred by steep declines for chip stocks amid concerns about possible trade restrictions and geopolitical tension.
The Dow Jones Industrial Average, which has closed at record highs the past two sessions and hit a new intraday high early Thursday, was down 0.7%.
Shares in Micron (MU), Advanced Micro Devices, Arm Holdings (ARM) and other chipmakers moved lower after rising earlier in the session, though AI investor favorite (NVDA) was in positive territory. Other large-cap tech stocks also retreated, including Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN).
The strong performance of large-cap tech stocks has played a key role in gains for major indexes in recent months, as has increasing investor optimism that the Federal Reserve will start cutting its benchmark lending rate soon.
Over the past week, the hopes for rate cuts have also fueled gains for small-cap stocks that stand to benefit most from a lower-interest-rate environment. The Russell 2000 small-cap index, which has gained about 10% over the past week as investors have rotated out of large-cap tech stocks, was up slightly Thursday morning.
The yield on 10-year Treasury, which has fallen as rate-cut expectations have solidified, was up slightly at 4.18%, after hitting its lowest level since March on Wednesday. Gold prices were also up slightly, trading around $2,470 an ounce.
Market participants are keeping a close eye on economic data and comments from Fed officials for further clues on how soon the central bank could start cutting rates.
Looking ahead on the corporate news front, Netflix (NFLX) earnings are slated to be released after the closing bell. Netflix shares were slightly lower Thursday.
Infosys Soars as Guidance Raised Amid AI Spending Boom
38 minutes ago
Infosys (INFY) lifted its revenue guidance, signaling increased spending from the information technology services provider’s customers on artificial intelligence.
The company said Thursday it expects full-year revenue growth for fiscal 2025 to be in the range of 3% and 4% in constant currency, up from its earlier outlook of a rise between 1% and 3%.
Infosys ADRs were up about 8% in midday trading, bucking a broader market downturn. The stock has gained 23% so far this year.
SOXX Semiconductor ETF Levels to Watch
2 hr 46 min ago
The iShares Semiconductor ETF (SOXX) was up about 1% early Thursday after plunging 7% the previous session amid growing concerns that chipmakers will face heightened U.S. trade restrictions and geopolitical tensions.
Looking at the ETF’s chart, SOXX remains in a long-term uptrend, but more recent technicals points to weakening buying momentum.
During retracements, the fund may encounter support at key chart levels including $230, $180, and $148.
A bars pattern, which takes the fund’s impulsive move higher from October 2023 to March this year and applies it to April’s swing low, projects a price target of around $292.
Read the full technical analysis here.
TSMC Rises as Earnings Show Strong Demand for AI Chips
3 hr 21 min ago
Taiwan Semiconductor Manufacturing Company (TSM) shares rose in early trading after the chipmaker reported second-quarter results that beat analysts’ estimates amid surging demand for artificial intelligence (AI) chips.
TSMC’s revenue jumped 40% from the year-earlier period, while profit increased 36%.
“Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies,” TSMC CFO Wendell Huang said.
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TSM ADRs were up about 1% in early trading, after falling 8% on Wednesday amid a broader selloff for chip stocks.
Stock Futures Point to Mixed Open for Major Indexes
4 hr 26 min ago
Futures tied to the Dow Jones Industrial Average were down 0.2%.
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S&P 500 futures were up 0.2%.
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Nasdaq 100 futures were up 0.6%.
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