US stocks weakened. The Nasdaq index fell the most, with large technology companies and the chip sector contributing the most. The market is awaiting Wednesday’s address to Congress by Fed chief Jerome Powell and Friday’s US unemployment report for February. Some analysts consider today’s sell-off in tech stocks as profit-taking.
Dow Jones index
The Dow Jones index, which includes shares of thirty leading U.S. companies, lost 1.04 percent today to end trading at 38,585.19 points. The broader S&P 500 index fell 1.02 per cent to 5,078.65 points and the Nasdaq Composite index, which includes many companies in the high-tech sector, fell 1.65 per cent to 15,939.59 points.
Today’s data from the Institute for Supply Management (ISM) indicated that growth in the US service sector slowed slightly in February as employment fell. However, the new orders indicator rose to a six-month high, indicating underlying strength in the sector. Other statistics showed that new orders for US-made goods fell more than expected in January.
Apple and AMD
Apple’s shares wrote down 2.8 percent today. They were reacting to a survey that showed iPhone sales in China fell 24 percent year-on-year in the first six weeks of 2024. Apple is facing increased competition from local manufacturers such as Huawei. The company considers China its largest overseas market and global manufacturing base.
The chip sector declined after a Bloomberg report that Advanced Micro Devices (AMD) hit a snag in its efforts to sell an artificial intelligence (AI) chip tailored for the Chinese market. Exports of advanced technology to Beijing are restricted by Washington. The Philadelphia Semiconductor Index, which tracks the top three dozen chipmakers, fell two percent, underperforming the broader market.
Source: ÄŒTK
