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Stock Market Today: Dow Slips as Intel Caution, Rising Bond Yields Dent Tech

Published 06/08/2022, 03:42 PM
Updated 06/08/2022, 04:15 PM
© Reuters

© Reuters

By Yasin Ebrahim

Investing.com -- The Dow fell Wednesday, as an Intel-led dent in tech stocks and ongoing worries about an economic stumble on the horizon amid rampant inflation weighed on sentiment.

The Dow Jones Industrial Average slipped 0.81%, or 269 points, the Nasdaq fell 0.73%, and the S&P 500 fell 0.9%. 

Intel (NASDAQ:INTC) ended the day more than 5% lower after the chipmaker touted an "incrementally more cautious” view on its near-term outlook amid pressure from falling demand as clients cut inventory levels.

The downbeat remarks triggered a wave of downgrades from analysts on Wall Street and soured sentiment on chip stocks, which fell nearly 3% midday.

The broader tech sector, meanwhile, was under pressure by a fresh climb in Treasury yields, with the 10-Year topping 3% amid ongoing bets for the Federal Reserve to stay the course on rate hikes to tackle inflation just as cracks appear in the economy.

Mortgage demand in May slumped to the lowest level in 22 years following a jump in mortgage rates, fueled by Fed rate hikes.

Twitter (NYSE:TWTR), however, bucked the trend lower rising about 1% as the social media company is reportedly willing to give Musk the information demanded on fake user and spam accounts on the social media platform. Earlier this week, Musk threatened to walk away from the deal after alleging the social media company's unwillingness to provide the data had "materially" breached the deal terms.   

The earnings front, meanwhile, offered further evidence that inflation pressures continue to build.

Campbell Soup (NYSE:CPB) raised its full-year profit guidance after reporting quarterly results that beat on both the top and bottom lines, though it said it expects core inflation to run above its outlook. Its shares were up about 2%.

Robinhood Inc (NASDAQ:HOOD), down nearly 4%, added to the losses from a day earlier after Securities and Exchange Commission Chair Gary Gensler unveiled a plan to change how retail stock trades are executed that many fear could dent the trading platform’s growth.

Under the plan, Gensler proposed that trading firms would compete to handle trades from retail investors.

Energy was the only sector to end the day above the flatline as oil prices jumped following a mixed weekly U.S. petroleum report showing an expected build in crude stocks, but a draw in gasoline inventories.

Exxon Mobil Corp (NYSE:XOM) topped $100 a share to close the day at record highs.  

Latest comments

this is just going to be range bound between these levels until Friday's CPI
it depends on big player's position
wish the market would take the drop and get it over with.
lowered forecasts seem to be trending
none of them want to be the one to go all in on negative - so 1/4 by 1/4 it goes down - 2 to 3 more to go
Good
so besutiful
hmmmm
hii
Not surprised. Small gain next day double the loss. Gotta love the market of slaughter.
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