Wall Street shares open lower on eve of key inflation report
Premium- Micron became the second big chipmaker to warn of downbeat revenue due to ongoing global supply snarls, following a similar caution by Nvidia on Monday
US equities started Tuesday in the red, losing more ground as investors braced for the latest inflation data and made cautious by negative news in the tech sector.
Micron became the second big chipmaker to warn of downbeat revenue due to ongoing global supply snarls, following a similar caution by Nvidia on Monday.
The news dragged down the tech-rich Nasdaq Composite Index, which had dropped 1.4 percent to 12,474.37 in mid-morning trading.
The Dow Jones Industrial was off 0.1 percent at 32,797.48, while the broad-based S&P 500 shed 0.5 percent to 4,121.2.
The earnings warnings "are providing a reality check that is cooling off the hot price action" seen over the past week, Briefing.com analyst Patrick J. O'Hare said.
And he noted that recent "white-hot action in a number of meme stocks was a glaring signpost that the trading action has gotten too far removed from reality."
Meanwhile, markets remain on edge about soaring US inflation, which is expected to keep the Federal Reserve raising interest rates aggressively.
New data from the US Labor Department showed unit labor costs surged 10.8 percent in the second quarter, as labor productivity fell 2.5 percent compared to 2021 -- the largest decline on record.
MINT PREMIUM See All
That comes just ahead of the consumer price data for July, after the June data posted a 9.1 percent surge over the past year, the highest since 1981.
Among individual stocks, Micron -- which also announced a $40 billion investment in the US chip manufacturing -- dropped 4.5 percent, and Nvidia fell 3.9 percent.
This story has been published from a wire agency feed without modifications to the text.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less