The Dow Jones Industrial Average slid 0.4%, or nearly 150 points, the benchmark S&P 500 dropped by almost 0.2%, while the tech-heavy Nasdaq Composite rose just above the flatline, in a reversal of earlier losses
Stocks were split on Tuesday as an early week, tech-fuelled rally wobbled after a Samsung profit warning took the shine off the sector.
The Dow Jones Industrial Average slid 0.4%, or nearly 150 points. The benchmark S&P 500 dropped by almost 0.2%, while the tech-heavy Nasdaq Composite rose just above the flatline, in a reversal of earlier losses.
Samsung’s update weighed on hopes for a bounce back in the PC and mobile sector, a key market for its memory chips. The Korean firm said it expects a 35% decline in fourth-quarter operating income, far short of estimates, as demand continues to lag.
Big Tech helped carry stocks higher on Monday, as the Dow shook off a plunge in Boeing shares after a malfunction on a 737 Max 9 jet. Shares in the carrier dropped marginally Tuesday even as Alaska and United Airlines said they had found loose parts in an inspection check.
The key focus for investors remains the December consumer inflation data due Thursday and what it could mean for the chances of easing interest rates. But two Federal Reserve officials on Monday poured cold water on Wall Street’s already waning expectations that a cut could come in the next few months.
The idea that inflation is cooling underpins investors’ belief that the US economy will skirt recession. That conviction faces a crucial test on Friday, when big banks start the Q4 earnings season.
Meanwhile, oil prices gained just below 2%, recouping some of Monday’s near 4% drop as investors weighed the impact of tensions in the Middle East and Saudi Arabia’s decision to reduce crude prices.
