Wall Street Hit by Tech Decline After Hawkish Fed Speak – Europe Market Wrap
Daily Dose, EU

Wall Street Hit by Tech Decline After Hawkish Fed Speak – Europe Market Wrap

Stocks fell as hawkish comments from a Federal Reserve policymaker reinforced the message that the US central bank is not in a hurry to lower interest rates, while a trio of tech giants weighed on US market futures.

Contracts for the S&P 500 fell 0.3%, putting Wall Street on course for a lower open, while those for the Nasdaq lost 0.7%, weighed down by premarket declines for AMD, Tesla, and Apple.

AMD fell more than 2.5% after encountering a US regulatory obstacle in its ambition to export an AI processor designed for China. Tesla’s stock is expected to fall further on Monday after poor vehicle shipment data in China. Weaker China sales also hurt on Apple, with data indicating a 24% decrease in iPhone deliveries in the first six weeks of 2024.

Investors are particularly anxious ahead of Fed’s Powell’s Congressional hearing on Wednesday and Thursday.

Powell is expected to reiterate the Fed’s stance that rate cuts will be gradual. That is especially true after Atlanta Fed President Raphael Bostic stated Monday that he expected the first rate cut, scheduled for the third quarter, to be followed by a pause. A spate of solid economic data has already caused markets to postpone the first rate cut until at least mid-year and limit the number of cuts this year to three.

In Europe, the STOXX 600 index down 0.2%, with automotive and mining stocks suffering the most as China’s newest market-support measures, revealed Tuesday, failed to soothe investors.

UK’s Chancellor Hunt will cut national insurance by 2p in budget – Times.