Stocks in New York took a hit on Monday as Intel and Advanced Micro Devices faced a setback in China. The decision by the Chinese government to block the use of their chips in government computers and servers caused a sell-off in both companies’ stocks. Additionally, Tesla experienced a decline after an analyst downgraded the stock. Dow Jones futures were down 0.2%, while S&P 500 futures lost 0.3%, and Nasdaq 100 futures fell 0.5%.
The Nasdaq 100 tracker Invesco QQQ Trust ETF and the SPDR S&P 500 ETF were both down as well. Treasury yields rose to 4.22%, while oil prices increased slightly, with West Texas Intermediate futures trading near $81 a barrel. Concerns arose over China’s implementation of guidelines to keep Intel and AMD chips out of government computers, feeding into a technological separation from the U.S.
Following the news, Intel shares dropped more than 4%, while AMD stock saw a 3.7% decline in premarket trading. In a separate development, Mizuho Securities downgraded Tesla’s stock from buy to neutral, lowering the price target as well. All these factors contributed to the downward trend in the stock market on Monday.
Looking ahead, economic data is relatively light for the week, with key earnings reports expected from Jefferies Financial, Paychex, Carnival, and RH. Notably, the stock market will be closed for Good Friday, offering a pause for investors. In the midst of these developments, investors are advised to stay updated on market conditions and be mindful of potential shifts in the landscape.
Stock market participants are closely watching Apple and Microsoft, both Dow Jones components, as their stock prices fluctuated ahead of Monday’s trading session. Apple rebounded slightly on Friday, while Microsoft encountered support at the 50-day line after hitting a new high. These movements indicate the evolving dynamics within the stock market, highlighting the need for vigilance and strategic decision-making.
As the market continues to ebb and flow, it remains crucial for investors to stay informed and navigate the turbulence with caution. By monitoring key stocks, economic indicators, and global developments, individuals can adapt to the ever-changing landscape of the stock market.