The tech outlook is cloudy, with megacap tech weakness weighing on Wall Street. Despite this, stocks in Europe and Asia rose, with South Korea’s market up 5% and Japan’s up 4.5%.
Market Moves
The S&P 500 was flat, while the Nasdaq fell 0.5% and the Dow rose 0.1%. The dollar’s rally and oil slump also paused, with the Mexican peso being the biggest gainer among emerging markets after its central bank held rates.
In terms of sectors, industrials rose 2% and communications services fell 1%. The ‘SOX’ chip index rose 3.5%, and the Roundhill memory stocks ETF rose 10%. Micron rose 15%, while Apple and Dell fell 6%.
Inflation and Interest Rates
Headline annual PCE inflation is above 4% for the first time in three years, with the Fed’s 2% target being exceeded. However, the month-on-month PCE data was softer than expected, and oil is down 40% from its recent peak.
This has led traders to remove 15 basis points from implied Fed tightening by year-end. The Fed’s rate policy is being closely watched, with some expecting rate hikes and others predicting a pause.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
