Nasdaq Slips as Chip Stocks Lose Steam
Tech-heavy Nasdaq Faces Setback
The Nasdaq and the S&P 500 experienced a decline on Friday as a rally in chip stocks lost momentum. A mixed labor market report revealed that employers added more jobs than expected in February, although the unemployment rate unexpectedly rose.
Chip Stocks Take a Hit
AI favorite Nvidia saw a 1.5% decrease, leading the losses among megacap growth and technology peers after reaching a record high. The Philadelphia Semiconductor Index also dropped 1.8% from its peak.
Investor Sentiment and Market Trends
Investors may have overextended their pursuit of certain stocks, leading to profit-taking and a need for market cooldown. Concerns about the weekend may have contributed to the downward trend in stock prices.
Tech Company Performance
Broadcom slid by 5.6% following a less-than-impressive full-year forecast, while Marvell Technology experienced a 9.1% drop due to lower-than-expected first-quarter results.
Market Figures and Economic Data
As of midday, major indexes showed mixed movements, with the Dow Jones up, S&P 500 down, and Nasdaq on a decline. The labor market displayed accelerated job growth in February, although wage gains slowed and the unemployment rate rose to 3.9%.
Fed Chair’s Insights and Future Expectations
Fed Chair Jerome Powell’s recent comments hinted at potential interest rate cuts as inflation concerns ease. Focus will now shift to consumer prices data for further insights on potential rate adjustments.
Retail and Consumer Trends
Gap saw a 5.1% increase after exceeding expectations in the fourth quarter, while Costco Wholesale faced a 6.6% dip in quarterly sales due to lower demand for higher-margin goods.
Market Performance and Outlook
Advancing issues surpassed decliners on both the NYSE and Nasdaq. The S&P index hit new highs, while the Nasdaq recorded new highs and lows.
