US Stocks Pull Back
US stocks were lower on Wednesday amid hot inflation data and continued volatility in the AI infrastructure sector. The S&P 500 fell 0.3% and the Nasdaq 100 slipped nearly 1%, while the Dow was flat. Chip producers extended this week's losses as ASML stated it could not keep up with fab demand, while Chinese competitors introduced improved products approaching the capabilities of US and Korean firms. Meanwhile, headline and core inflation prints solidified expectations that the Federal Reserve will deliver another rate hike this year. AMD and Intel fell 3%, while Dell, SanDisk, and Palo Alto Networks sank between 3% and 7%. Among financial companies, Bank of America tanked over 7% as both its equity and fixed-income trading revenues missed estimates. Morgan Stanley was 1% higher after its equity trading revenue topped forecasts, and BlackRock edged up after pulling in more capital in its asset management business, boosting fee revenue.
US stocks were lower on Wednesday amid hot inflation data and continued volatility in the AI infrastructure sector. 3% and the Nasdaq 100 slipped nearly 1%, while the Dow was flat. Chip producers extended this week's losses as ASML stated it could not keep up with fab demand, while Chinese competitors introduced improved products approaching the capabilities of US and Korean firms. Meanwhile, headline and core inflation prints solidified expectations that the Federal Reserve will deliver another rate hike this year.
AMD and Intel fell 3%, while Dell, SanDisk, and Palo Alto Networks sank between 3% and 7%. Among financial companies, Bank of America tanked over 7% as both its equity and fixed-income trading revenues missed estimates. Morgan Stanley was 1% higher after its equity trading revenue topped forecasts, and BlackRock edged up after pulling in more capital in its asset management business, boosting fee revenue.