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Apple slammed over report China has banned iPhone use for government officials
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Lockheed Martin slips from cut in F-35 jet delivery outlook
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Roku moves ahead with workforce reduction plan
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Fed’s beige book coming at 2:00PM ET
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Indices Down: Dow 0.56%, S&P 0.79%, Nasdaq 1.06%
(Updated at 11:47 AM ET/1547 GMT)
By Srishti Achar A and Amrita Khandekar
Sept 6 (Reuters) – Wall Street declined on Wednesday after stronger-than-expected services sector data raised concerns about sticky inflation and interest rates staying high for a prolonged period, while a slide in Apple shares weighed on the index. declined.
The Institute for Supply Management (ISM) said on Wednesday that its non-manufacturing PMI rose to 54.5 last month from an expected 52.5, while prices paid by service sector businesses for inputs increased. Traders’ bets to hold off on an interest rate hike at the central bank’s September meeting stood at 91%, according to the CME Fedwatch tool, while bets on an interest rate hike in November dropped to 46.8% from about 57% before the data.
“Everyone agrees that we raised rates, but when you see something like this (stronger-than-expected economic data), they get a little nervous,” co-manager Joe Saluzzi said. of business at Themis Trading in Chatham, New Jersey.
“Every Fed governor comes out and says they’re looking for data and today’s data point is certainly somewhat more inflationary.”
Boston Fed President Susan Collins stressed the need for the central bank to “proceed cautiously” as it makes its next monetary policy move. Apple was the biggest loser among the three major indices, falling 3.0% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. with.
Other megacaps also declined, with Tesla, Amazon.com and Nvidia shedding between 1.0% and 3.2% as yields on 10-year and two-year Treasury notes edged higher following economic data.
Healthcare stocks were down 0.7%, led by a 1.3% drop in Johnson & Johnson. According to a report from thefly.com, HSBC initiated coverage on the healthcare group with a “Hold” rating.
Investors were also looking forward to the Fed’s “Beige Book” for a snapshot of the US economy ahead of inflation data scheduled for next week and the Fed’s policy decision on Sept. 20, which was due at 2:00 p.m. ET ‘
The recent rise in oil prices has also fueled fears of persistent inflationary pressures that could compel the Federal Reserve to maintain its accommodative stance on interest rates.
At 11:47 a.m. ET, the Dow Jones Industrial Average was down 194.34 points, or 0.56%, at 34,447.63, the S&P 500 was down 35.48 points, or 0.79%, at 4,461.35 and the Nasdaq Composite was down 147.96 points, or 1.06. %, at 13,872.99.
Lockheed Martin declined 4.0% after the US arms maker cut its delivery outlook for its F-35 jet.
Roku climbed 6.1% after the video-streaming company said on Wednesday it would cut its workforce by about 10% and limit new hires.
Decline issues outnumbered advancers by a 2.14-to-1 ratio on the NYSE and 2.06-to-1 ratio on the Nasdaq.
The S&P Index hit three new 52-week highs and 24 new lows, while the Nasdaq hit 32 new highs and 119 new lows. (Reporting by Srishti Achar A and Amrita Khandekar in Bengaluru; Editing by Vinay Dwivedi)
Source: finance.yahoo.com
