Stock prices associated with semiconductor chips decelerate Dow Jones Industrial Average following a historical peak.
In the lead-up to upcoming financial reports, U.S. financiers remained hesitant to seal deals. The investing atmosphere was clouded by potential sales slumps in the semiconductor sector. The renowned U.S. value index, the Dow Jones, momentarily rose to an unprecedented high of 43,277.78 points at the start, yet plummeted by 0.7% to 42,740 points by the end. The tech-dominated Nasdaq dropped by 1% to 18,315 points. The comprehensive S&P 500 lowered by 0.8% to 5,815 points.
This pessimistic atmosphere was fueled by losses in semiconductor stocks. They endured a press report suggesting that the U.S. government is considering curtailing the export of sophisticated AI (Artificial Intelligence) specialized processors to specific nations, primarily those near the Persian Gulf. The stocks of Nvidia, AMD, and Intel decreased by up to 5.2%.
The stock market received a boost from the decrease in energy costs. The U.S. WTI crude oil fell by 3.7% to $74.58 per barrel (159 liters). "The news that Israel won't launch an attack on Iran's oil infrastructure is reassuring," underlined CMC expert Stanzl.
Banks Gain Some Ground
Moreover, Opec reduced its demand forecasts for 2024 and 2025 once more, mainly due to the weakening economy in China. Consequently, oil stocks also faced selling pressure. The stocks of Exxon and Chevron each dropped by roughly 3%. On the other hand, airlines profited from the prospect of reduced fuel costs. The stocks of American Airlines and United climbed by up to 1.3%.
The banking sector regained prominence, with Bank of America (BofA) and Goldman Sachs presenting well-received quarterly results. The former reported a decline in profits but surpassed market expectations. Goldman stood out with a surge in profits. Bank-of-America shares concluded the trading day with a minimal increase of 0.5%. Goldman shares finished almost unchanged.
According to the figures reported thus far, some projections for the current quarter could be enhanced, suggested Sam Stovall, chief investment strategist at research firm CFRA. However, analysts now anticipated only a mid-single-digit percentage growth rather than low. "That's no grand slam."
Coty was pushed into a corner after the U.S. company revised its growth targets downwards. The mass cosmetics market seems to be the poorest performer, wrote analyst Dan Su of Morningstar Research. This was hinted at by the struggles of certain drugstore chains. Coty shares plummeted by nearly 11%.
Get more information about today's stock market trends here.
The following financial reports had U.S. financiers hesitant to finalize deals due to potential sales slumps in the semiconductor sector. The anticipation of improved stock market trends following reduced energy costs was highlighted by Sam Stovall.
