US Stock Futures Slide After Record Highs And Tech Pullback
Date
7/17/2024 3:08:51 PM
(MENAFN- Investor Ideas) On Wednesday, the US stock indices opened with mixed performances following record highs. The S&P 500 and nasdaq recorded price corrections on profit-taking while the Russell 2000 gained after a 3.5% increase yesterday, marking a five-day winning streak. This broadening market rally is driven by traders' optimism about potential interest rate cuts, which are expected to benefit small-cap Stocks and companies with higher financing costs. Investors fully priced a rate cut in September and three cuts in total this year, as more Fed members delivered dovish comments.
Tech stocks like Apple, Nvidia and Meta dropped, signaling a pullback from mega-cap technology stocks. US-listed shares of Taiwan Semiconductor lost ground after Trump's comments on Taiwan's security. ASML, which sells semiconductor equipment for chipmakers, sank despite better-than-expected quarterly results. This decline followed a report that the Biden administration is considering tougher trade restrictions if companies like ASML continue to make their technology available to China. As a result, the technology sector could remain exposed to the political developments in the US and the uncertainty surrounding the upcoming elections.
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