Stock Market Update: Treasury Yields Rise as Chip Shares Fall, Positive Earnings Reports Help Limit Declines

2023-10-17 18:47:44
(For a live Archyde.com blog on U.S., British and European stock markets, click LIVE/U.S. stocks were slightly lower in afternoon trading Tuesday as Treasury yields rose and manufacturers’ shares of chips falling after the Biden administration said it planned to halt shipments of advanced artificial intelligence chips to China. The Philadelphia SE Semiconductor Index .SOX was down 1.1% and Shares of Nvidia NVDA.O were down 4.7%, even though the world’s most valuable chipmaker said it did not expect a significant near-term impact on financial results due to the restrictions. U.S. Treasury yields US10YT=RR have risen on strong economic data. Higher yields blunt the appeal of stocks by offering investors comparatively high income on risk-free government bonds. Positive earnings reports from companies such as Bank of America BAC.N, whose stock rose 2.3% following its quarterly results, helped limit the declines, however. “Earnings for most major companies were pretty good today… but the indexes are hitting a brick wall as yields rise,” said Peter Cardillo, chief economist at Spartan Capital Securities in New York. York. The Dow Jones Industrial Average .DJI lost 67.92 points, or 0.2%, to 33,916.62, the S&P 500 .SPX lost 8.67 points, or 0.20%, to 4,364.96 and The Nasdaq Composite .IXIC fell 46.54 points, or 0.34%, to 13,521.44. Investors always eagerly await news regarding the Middle East. US President Joe Biden is due to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to flow to Gaza residents. U.S. retail sales rose 0.7% in September, compared with estimates for a 0.3% rise, while a separate reading showed U.S. factory output rose more than scheduled for September. In other earnings news, Goldman Sachs’ GS.N third-quarter profit fell less than expected. But its shares fell 2.1%. Advancing stocks outnumbered declining stocks on the NYSE by a ratio of 1.35 to 1; on the Nasdaq, a ratio of 1.75 to 1 favored rising stocks. The S&P 500 recorded 17 new 52-week highs and six new record lows; The Nasdaq Composite recorded 41 new record highs and 124 new record lows.
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