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US stocks slips on big tech stumble ahead of key inflation, fed speak

Published 25/03/2024, 01:00
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Investing.com-- U.S. stocks fell Monday, pressured by big tech as investors awaited further catalysts including key economic data and remarks from Federal Reserve officials this week.  

By 14:00 ET (18:00 GMT), the Dow Jones Industrial Average was down 165 points, or 0.4%, S&P 500 fell 0.2% and NASDAQ Composite was flat.

Fed speak, inflation data in focus 

Atlanta Federal Reserve Bank President Raphael Bostic reiterated Monday that he sees the need for just one rate this week, adding that the strong economy allows the central bank to continues with its cautious approach. 

Fed governor Lisa Cook also reiterated the need for the bank or proceed carefully on rate cuts. The somewhat less dovish remarks were in contrast to Fed chairman Powell's speech last week following the central bank's signal that three rate cuts remain on the table for 2024. 

Further Fed speak will follow later this week, with remarks from Fed governor Christopher Waller and chairman Jerome Powell likely to garner the bulk of investor attention. 

Personal consumption expenditures data, which is the Fed’s preferred inflation gauge, is due this Friday, when the market is on holiday for Good Friday.

Traders now see a 75% chance of the Fed bringing in the first cut in June, according to the CME FedWatch tool, up from around 55% at the start of last week.

Boeing bounces as CEO set to step down; United Airlines in regulatory quagmire 

Boeing (NYSE:BA) stock rose 1.2% after the aircraft manufacturer announced significant management changes on Monday, with Dave Calhoun to step down as CEO at the end of 2024.

United Airlines (NASDAQ:UAL) stock fell 4.5% after the U.S. Federal Aviation Administration's move to increase its oversight of the carrier after a series of recent safety incidents.

Super Micro Computer powers chip stocks slightly higher, but China regulatory action weighs 

Super Micro Computer Inc (NASDAQ:SMCI) jumped 10% after JPMorgan started coverage on the company at overweight with a $1,150, suggesting about 4.5% upside from current levels, amid optimism about an acceleration in server demand to support the AI revolution.

Still, sentiment on chips were soured after China blocked the use of Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) chips in government computers. 

In other tech news, Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOGL) stocks were in the red after EU antitrust regulators launched investigations into the tech giants for potential breaches of the Digital Markets Act, potentially leading to hefty fines for the companies.

Disney gets Barclays boost; DWAC jumps ahead of nasdaq debut for Trump's social media app; Lucid (NASDAQ:LCID) jumps on liquidity boost

Walt Disney Company (NYSE:DIS) rose more than 2% after Barclays upgraded it to overweight amid growing confidence that earnings estimate for the entertainment giant has bottomed. 

Activist investor Nelson Peltz, meanwhile, said he supports Disney CEO Bob Igor, though flagged the board members "questionable strategic and capital allocation decisions," amid a proxy battle that is headed into its final week, with tally votes due Apr. 3.

Digital World Acquisition Corp (NASDAQ:DWAC) jumped more than 30%  after the blank-check company officially completed its merger with former President Donald Trump’s Trump Media & Technology Group Corp., the parent company of his Truth Social. 

Energy stocks lead rises on ceasefire doubts

Oil prices rose Monday after the United Nations Security Council voted on a measure demanding an immediate ceasefire in the Gaza strip for Ramadan, as well as the release of all hostages by Hamas.

A deescalation in the Israel-Hamas conflict would likely soothe concerns over geopolitical instability in the oil-rich Middle East region.

APA Corporation (NASDAQ:APA), Copper Futures, Coterra Energy Inc (NYSE:CTRA) were among the biggest gainers.

(Peter Nurse, Ambar Warrick contributed to this article.)

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