Following a lackluster performance in the prior session, stocks largely descended on Wednesday, with the tech-heavy Nasdaq experiencing a notable slump, although the Dow managed to avoid the downward trend.As it stands, the Nasdaq is just off its lowest levels of the day, down 187.39 points or 1.1 percent at 17,567.43. Meanwhile, the S&P 500 has declined by 21.21 points or 0.4 percent to 5,604.59, whereas the Dow has risen by 59.84 points or 0.2 percent to 41,310.34.The significant drop in the Nasdaq reflects broader weakness in the tech sector, particularly ahead of the anticipated quarterly results from Nvidia (NVDA), set to be released after the market closes today. Nvidia shares are currently down 3.2 percent, more than erasing a 1.5 percent gain from Tuesday’s session.The tech sector experienced some of its worst performances from computer hardware stocks, leading to a 3.3 percent decline in the NYSE Arca Computer Hardware Index. Notably, Super Micro Computer (SMCI) drove the sector lower, plunging by 25.9 percent after announcing a delay in filing its Annual Report on Form 10-K for the fiscal year ending June 30.Semiconductor stocks also showed considerable weakness, indicated by a 2.6 percent slump in the Philadelphia Semiconductor Index. Additionally, gold stocks saw a significant downturn alongside a drop in gold prices, with the NYSE Arca Gold Bugs Index falling by 2.5 percent.Other sectors like oil services, steel, and software also recorded notable losses, whereas banking and utilities stocks displayed resilience.The overall decline on Wall Street comes as traders anticipate the Commerce Department’s report on personal income and spending for July, which includes the Federal Reserve’s preferred inflation metrics. Economists expect the annual consumer price growth rate to increase marginally to 2.6 percent in July from 2.5 percent in June, with the core consumer price rate expected to tick up to 2.7 percent from 2.6 percent.While the data is not expected to change the optimism that the Fed will lower rates next month, it might influence expectations regarding the speed of future rate cuts. Speaking at the Jackson Hole Economic Symposium last Friday, Fed Chair Jerome Powell stated that the “time has come for policy to adjust,” but emphasized that the “timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”In overseas trading, the Asia-Pacific stock markets saw mixed results on Wednesday. Japan’s Nikkei 225 Index rose by 0.2 percent, China’s Shanghai Composite Index fell by 0.4 percent, and Hong Kong’s Hang Seng Index declined by 1.0 percent.Conversely, European stocks have generally advanced. Germany’s DAX Index is up by 0.8 percent, France’s CAC 40 Index has increased by 0.4 percent, and the U.K.’s FTSE 100 Index remains just above the unchanged mark.In the bond market, treasuries showed indecision after modest declines over the previous two sessions, with the yield on the benchmark ten-year note, which moves inversely to its price, barely dipping by less than a basis point to 3.829 percent.The material has been provided by InstaForex Company – www.instaforex.com
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