U.S. stocks appear on track to clock a fifth straight session of losses, with the tech sector potentially leading the slide after the U.S. asked domestic chipmakers not to supply AI chips to China to keep them out of the reach of the military.
The major U.S. averages ended Wednesday’s session lower, as investors digested data showing a slowdown in private payroll growth and Fed’s hawkish signal. All three averages continue to languish at 5-week lows. They were also lower for the month.
Nasdaq Composite | -0.56% | 11,816.20 | |
S&P 500 Index | -0.78% | 3,955 | |
Dow Industrials | -0.88% | 31,510.43 |
The fact that higher rates are expected for now should limit the damage going forward, he added.
Here’s a peek into index futures trading:
Nasdaq 100 Futures | -1.03% | |
S&P 500 Futures | -0.07% | |
Dow Futures | -0.74% | |
R2K Futures | -1.45% |
See also: S&P 500 Bracing For More Pain In September? Here's What History Tells Us
On the corporate front, tech stocks, specifically chip stocks, should come under pressure after Nvidia Corporation (NASDAQ: NVDA) disclosed that the U.S. government has laid forth a special licensing requirement for AI chip exports to China. Peer Advanced Micro Devices, Inc. (NASDAQ: NASDAQ:AMD) has also hinted at a similar development, according to Reuters.
Walt Disney Company (NYSE:DIS) could be in the spotlight after a Wall Street Journal report said it is toying with the idea of an Amazon, Inc. (NASDAQ: NASDAQ:AMZN) Prime-like membership plan.
Chinese electric vehicle trio Nio, Inc. (NYSE: NIO), XPeng, Inc. (NYSE: XPEV) and Li Auto, Inc.’s (NASDAQ: LI) shares were all lower following the release of August sales results.
Crude oil futures are lower for the third straight session, declining about 2% ahead of the New York session.
The Asian markets closed mostly lower, weighed down by the negative lead from Wall Street overnight and data showing continued contraction of the manufacturing sector in China.
European stocks are deep in the red in early trading.
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE: SPY (NYSE:SPY)) was slipping 0.63% to $395.18 and the Invesco QQQ Trust(NASDAQ: QQQ) was moving down 0.84% to $296.75, according to Benzinga Pro data.
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