U.S. stocks appear on track to clock a fifth straight session of losses, with the tech sector potentially leading the slide after the U.S. asked domestic chipmakers not to supply AI chips to China to keep them out of the reach of the military.
The major U.S. averages ended Wednesday’s session lower, as investors digested data showing a slowdown in private payroll growth and Fed’s hawkish signal. All three averages continue to languish at 5-week lows. They were also lower for the month.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | -0.56% | 11,816.20 | |
| S&P 500 Index | -0.78% | 3,955 | |
| Dow Industrials | -0.88% | 31,510.43 |
Explaining the market malaise, Brad McMillan, chief investment officer for Commonwealth Financial Network said, “In the short term, it likely means higher rates and more pressure on the stock market. But in the medium term, rates will likely come down again.”
The fact that higher rates are expected for now should limit the damage going forward, he added.
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -1.03% | |
| S&P 500 Futures | -0.07% | |
| Dow Futures | -0.74% | |
| R2K Futures | -1.45% |
Among the Main Street readings scheduled for the day are the weekly jobless claims data, and U.S. August purchasing managers’ indices from S&P and the Institute for Supply Management. The U.S. Census Bureau’s construction spending report for July is due at 10 a.m. ET.
See also: S&P 500 Bracing For More Pain In September? Here’s What History Tells Us
On the corporate front, tech stocks, specifically chip stocks, should come under pressure after Nvidia Corporation NVDA disclosed that the U.S. government…
