Dow Jones futures held flat early Wednesday after chip and AI hardware names dominated Tuesday's losses, as the stock market retreated for a third straight session. The Dow shed 0.2% Tuesday, the S&P 500 fell 0.7% and the Nasdaq dropped 1.3%, while Target beat earnings estimates and Moderna surged on a cancer vaccine trial win.
Dow Jones futures were little changed early Wednesday, along with S&P 500 and Nasdaq futures, after the market pulled back for a third straight session. Chip and AI hardware stocks led Tuesday's losses, and Target fell despite an earnings beat.
AI and chip stocks lead the slide
Sandisk, Micron Technology and Credo Technology dove below key technical levels just after reclaiming them. Sandisk stock tumbled 9%, giving back a fraction of its 47% gain over the prior six sessions, and fell back below its 50-day line. Micron stock gave up 7%, back below its 50-day line after closing right at a short-term high. Credo stock dived 13% to 245.97, still above its 50-day line but well below its 280.50 buy point. Advanced Micro Devices and Bloom Energy, both testing 50-day-line resistance, sold off 4.3% and 10% respectively.
Indexes retreat, yields hit fresh highs
The Dow Jones Industrial Average dipped 0.2% in Tuesday's trading. The S&P 500 shed 0.7%, while the Nasdaq composite retreated 1.3%, closing below its mid-July short-term highs. The small-cap Russell 2000 slumped 1.3% as well. The 10-year Treasury yield fell two basis points to 4.71%, backing off a 19-month high hit intraday, while the 30-year yield dipped 2.5 basis points to 5.28% after touching a fresh 19-year high of 5.33% in the morning.
Earnings and other movers
Target's earnings solidly beat estimates, with revenue, same-store sales and guidance also topping expectations, yet the stock fell slightly before the open. TJX Cos. earnings slightly beat views, but the retailer declined modestly premarket, and Lowe's fell on mixed results and weak guidance. Separately, a personalized cancer vaccine from Moderna and Merck performed well in a late-stage melanoma trial; Merck stock rose to a new high while Moderna stock skyrocketed more than 100%.
Source: Investor's Business Daily
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