With all eyes on consecutive inflation data coming this week, Wall Street stocks fell again on Tuesday as profit warnings hurt tech stocks.
Investors may have used the recent rebound in stock prices to cash in before the government reports July consumer prices on Wednesday and producer prices on Thursday.
While the data points to a monthly inflation slowdown from June, the annual pace is likely to remain near 40-year highs.
“There are real concerns about what numbers we can get with the consumer sentiment numbers tomorrow, Thursday and even Friday,” said Tom Cahill of Ventura Wealth Management.
“There’s a lot of things to consider going into the end of the week and there’s been a lot of profit made in the last few weeks, so I think there’s a bit of profit-taking going on,” he told AFP.
The three major indices opened in the red and stayed there throughout the trading session.
The tech-rich Nasdaq Composite Index slipped 1.2 percent to close at 12,493.93 after Micron Technologies became the second major chipmaker to warn of falling revenue due to ongoing global supply shortages, after Nvidia issued a similar warning on Monday.
“It appears that the tech sector is slowing down along with the rest of the economy,” Cahill said.
The Dow Jones Industrial lost 0.2 percent to end the day at 32,774.41, while the broad-based S&P 500 fell 0.4 percent to 4,122.47.
Micron — which also announced a $40 billion investment in US chip manufacturing — fell 3.7 percent and Nvidia fell 3.9 percent.
#stocks #fall #consumer #price #data
