Last Update: June 22, 2023, 04:47 AM IST
New York, United States (USA)
Megacaps and tech-related stocks were heavily weighted in the market, including AI-related stocks Microsoft and Nvidia.
All three major stock indices posted their third consecutive daily decline, with the Dow closing down three-tenths of a percent.
Wall Street closed lower on Wednesday after Federal Reserve Chairman Jerome Powell told lawmakers on Capitol Hill that more interest rate hikes were “a pretty good guess,” reinforcing the central bank’s commitment to taming inflation. does.
All three major stock indexes posted their third consecutive daily decline, with the Dow down three-tenths of a percent, the S&P 500 down one percent, and the Nasdaq down 1.2%. Happened.
Megacaps and tech-related stocks were heavily weighted in the market, including AI-related stocks Microsoft and Nvidia.
“A lot of these companies have gotten way ahead of themselves from a valuation perspective.”
Timothy Chubb is Chief Investment Officer at Girard, Univest Wealth Division.
“Certainly some technology companies related to AI are overbought and their valuations are very expensive. But, you know, more broadly, I would say some of the largest, you know, ten, twenty companies within the S&P 500, Nasdaq, have seen that much expansion without earnings growth. It really puts them in a vulnerable position, especially considering how crowded they are.”
In testimony before the US House Financial Services Committee, Fed Chairman Jerome Powell said the central bank remains “firmly committed” to bringing inflation back to its 2% target and added that if the economy continues on its current path the future There is a possibility of increase in rates. ,
But traders are taking a more optimistic view, as interest rate futures point to just one more rate hike in 2023.
For individual movers, Tesla was the biggest drag on the S&P 500, after Barclays lowered its rating on the stock from “overweight” to “equal weight,” following a recent rally in shares of Elon Musk’s EV nearly five and a half percentage declined. The maker was very bullish relative to the basics.
Shares of package delivery firms FedEx and UPS both declined after FedEx reported disappointing quarterly earnings and said its profit margins were being pressured by lower global demand.
And crypto firms including Coinbase rallied when bitcoin broke the $30,000 level.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
