US stocks pull back as tech giants hit by EU probe

Mar26,2024



wall Street Faced a slight decline on Monday Dow Jones Industrial AverageS&P 500, and Nasdaq All are facing a bearish trend after previously seeing substantial weekly gains. The Dow Jones fell 162.13 points, or 0.41%, to 39,313.77. Meanwhile, the S&P 500 and Nasdaq saw declines of 0.31% and 0.27%, ending at 5,218.21 and 16,384.47, respectively.
Investors are currently facing uncertainty about the Federal Reserve's interest rate direction, following last week's confirmation of three potential rate cuts this year. However, conflicting comments from Chicago Fed President Austin Goolsbee and Fed Governor Lisa Cook suggest a cautious approach to interest rate adjustments.
Despite the overall market decline, specific sectors such as technology demonstrated resilience. In particular, shares of Nvidia and Micron Technology rose, although the broader semiconductor segment faced challenges due to new regulations in China affecting US microprocessors.
Market sentiment remains tentative as participants await the upcoming Personal Consumption Expenditure (PCE) Price Index, a key inflation measure that influences the Fed's decisions. This anticipation is set against the backdrop of a holiday-shortened trading week, adding to the subdued market activity.
Further momentum includes the performance of major companies like Boeing, which announced significant management changes, and Walt Disney, which enjoyed an uplift following an upgrade from Barclays. However, the tech sector faced additional pressure from European regulatory scrutiny, particularly affecting giants like Apple, Alphabet and Meta.
As the market landscape evolves, investors remain vigilant and assess the impact of macroeconomic indicators, corporate developments and regulatory changes on their portfolios.
(with inputs from agencies)



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