S&P, Nasdaq, Dow slides on sturdy financial information; Micron hits chipmakers

U.S. shares sank on Thursday, weighed down by strong financial information that probably offers room to the Federal Reserve to proceed coverage tightening. Micron Expertise (MU) dragged down semiconductor shares after asserting layoffs and a disappointing outlook.

By mid-day, the tech-heavy Nasdaq Composite (COMP.IND) was down 3.29% to 10,357.04 factors, with Amazon (AMZN), Microsoft (MSFT) and Apple (AAPL) falling greater than 3% every.

The benchmark S&P 500 (SP500) was 2.48% decrease at 3,782.34 factors, whereas the blue-chip Dow (DJI) declined 1.91% to 32,738.50 factors.

All 11 S&P sectors fell, with Expertise and Client Discretionary the highest losers.

Quantity can also be anticipated to be decrease on Thursday, with many touring forward of the Christmas lengthy weekend.

The ultimate measure of Q3 GDP development was revised upward to three.2%, greater than the anticipated 2.9%, signaling a strong financial system regardless of the Fed’s aggressive price hikes.

Moreover, the variety of People submitting for preliminary jobless claims got here in decrease than anticipated, rising by 2K to 216K in comparison with the anticipated 225K. The info confirmed that the labor market continued to stay stubbornly resilient.

Additionally fueling a number of the damaging sentiment is billionaire hedge fund supervisor David Tepper, who acknowledged he is been “leaning quick” equities within the final couple of weeks as he would not see rates of interest coming down quickly all over the world.

“The 2022 bear market will probably be remembered as a 12 months when collapsing development inventory valuations and rising rates of interest doomed virtually each asset class to return purgatory,” Scott Opsal, director for equities at Leuthold Weeden, mentioned. “Hopes for avoiding a second down 12 months relaxation with a possible high in rates of interest and strong earnings underpinning the inventory market.”

“Wall Road strategists have a year-end 2023 worth goal of simply over 4,000 for the S&P 500, a number of proportion factors of upside from right this moment however hardly motive to toast a affluent new 12 months,” he mentioned.

In different financial information, the November index of main indicators got here in at -1.0% to 113.5 in comparison with the anticipated -0.5% determine.

Turning to the bond markets, charges had been combined. The ten-year Treasury yield (US10Y) was flat at 3.68%. The two-year yield (US2Y) rose 3 foundation factors to 4.25%.

Amongst lively movers, chip large Micron fell after it indicated that demand for its reminiscence chip merchandise continued to fall and introduced plans to chop 10% of its workforce.

Micron’s drop weighed on the Philadelphia Semiconductor Index (SOX), whereas shares of friends resembling NXP Semiconductors (NXPI) and Marvell Expertise (MRVL) slipped.