US stocks fell on Friday as investors were hit by a drop in\nchipmakers stocks and weak data from China.<\/p>\n\n\n\n
The Dow Jones Industrial Average was down 38 points, or 0.1 percent.\nThe Standard & Poor’s Index shed 0.1%, with the technology sector down\n0.8%. The NASDAQ composite was down 0.4%.<\/p>\n\n\n\n
Chip makers fell broadly after the weak quarterly results\nfrom Broadcom. VanEck Vectors Semiconductor ETF (SMH) fell 2.7%, driven by a\n6.4% drop in Broadcom. The chip maker posted weaker-than-expected earnings in\nthe previous quarter and cut its guidance for 2019, citing weak\n“broad-based” demand and the US campaign on Huawei.<\/p>\n\n\n\n
Other semiconductor stocks also fell. Micron Technology, Advanced\nMicro Technology and Applied Materials were trading down more than 1%. The Dow\nalso fell 1.3%.<\/p>\n\n\n\n
The \u201cweak 2H outlook could pressure AVGO\/peers \u2026 and semis\nin general until we get a China\/US trade resolution that can reignite customer\nconfidence,\u201d declared Bank of America senior analysts. \u201cWe do assume that any\nvolatile stock market correction could pressure the two sides to come to some\nkind of resolution.\u201d<\/p>\n\n\n\n
Wall Street sentiment has been dampened by disappointing\nindustrial data from China. Industrial production in China rose 5% last month\non an annual basis, the slowest pace of growth in 17 years. Chinese stocks fell\novernight after the release of data. Shanghai Composite Index lost 1% while\nShenzhen A Shares fell 1.8%.<\/p>\n\n\n\n
The main US stock indexes recorded strong gains in the\nprevious session, adding to the sharp rise this month. The Dow Jones, Standard\n& Poor’s and Nasdaq rose more than 5% in Friday’s session. They were all\nalso at a fast pace for weekly consecutive gains.<\/p>\n\n\n\n
Retail sales in the United States rose by 0.5% in May,\naccording to the Ministry of Commerce. This was below the 0.6% gain forecast by\neconomists surveyed. However, April retail sales were adjusted. May sales also\nrose by 0.5% excluding cars, building materials, gas and food.<\/p>\n\n\n\n
\u021aWe continue to expect that a sharper slowdown in economic\ngrowth over the coming months will convince the Fed to cut interest rates, but\nthe retail sales data reinforce our view that officials are likely to wait\nuntil the September FOMC meeting before pulling the trigger,\u201d declared senior\nUS market analyst Andrew Hunter.<\/p>\n\n\n\n
The Federal Reserve is set to hold a two-day monetary policy\nmeeting next week. The central bank is not expected to make any policy changes\nnext week, but investors will be looking for evidence of possible rate cuts\nlater this year.<\/p>\n\n\n\n
Market expectations for a July interest rate cut were at\n86.3% and investors were pricing a 70.1% chance of another cut in September.<\/p>\n\n\n\n
” People are reading the Fed wrong. Everyone is\nexpecting these cuts and the narrative is they will be supportive of the\nmarket,\u201d, declared David Lafferty, the Chief Market Staregist of Natixis\nInvestment Managers. \u201cIf the Fed is anywhere close to what the market is\npricing in, which is two-to-three cuts in the next few months, that\u2019s a Fed\nthat\u2019s in full retreat. I see that as undermining confidence.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
US stocks fell on Friday as investors were hit by a drop in chipmakers stocks and weak data from China. The Dow Jones Industrial Average was down 38 points, or 0.1 percent. The Standard & […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,4],"tags":[66,79,36,34,114,120,33,10,58,57,70,47,86,80,23,46,109,39,85,106,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1242"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1242"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1242\/revisions"}],"predecessor-version":[{"id":1244,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1242\/revisions\/1244"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1243"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}