© Reuters.
Investing.com – U.S. stocks are under pressure after reports that the U.S. may restrict sales of artificial intelligence chips to China have weighed on shares of Nvidia and Advanced Micro Devices.
As of 9:40 AM ET (1340 GMT), the index was down 98 points, or 0.3%, while the index was down 0.3% and down 0.1%.
Both chipmakers have been hit by earlier restrictions on selling chips to China. Shares of NVIDIA Corporation (NASDAQ:) were down 1.9% and shares of Advanced Micro Devices Inc (NASDAQ: ) were down 1.3%.
Among other chip-related stocks, Qualcomm Incorporated (NASDAQ: ) fell 2.1% and Marvell Technology Group (NASDAQ: ) fell 0.7%.
It’s a departure from Tuesday’s rally, when a rise in Big Tech stock helped the Dow end a six-day losing streak as investors sidelined recession worries.
Fed chief Powell to speak in Portugal
Fed chief Jerome, along with other central bankers, will speak at a conference in Portugal on Wednesday where officials discuss monetary policy.
Investors are anticipating the Fed’s next rate move after stronger-than-expected economic reports this week, ahead of Friday’s US inflation report for May. Inflation is expected to rise compared to last year, but show further cooling compared to previous months.
Futures traders are factoring in the possibility of a quarter percentage point rate hike at the next Fed meeting in July after the Fed paused in rate hikes this month.
Bank stress test results due today
Bank stocks are in the spotlight today ahead of the Fed’s release of its latest stress test results. The Fed annually tests the largest US banks to see if they have enough capital to withstand major disruptions in the financial system. The results affect how much capital banks can return to shareholders in the form of dividends and share repurchases.
This year’s results have come under scrutiny after 3 major banks collapsed this spring, driven by an outflow of deposits following last year’s soaring interest rate hike.
General Mills sees slower growth
Shares of packaged food giant General Mills Inc (NYSE:) fell 4.6% after the company forecast mid-single digit adjusted earnings growth for the fiscal year.
Boeing Co (NYSE:) shares rose 0.6% after the company said most of its 737 max fleet in China had resumed commercial service since the end of June.
Oil has fallen in price. Futures on fell by 0.5% to $67.39 per barrel, and futures on – by 0.5% to $72.12 per barrel. Gold fell 0.4% to $1.916.
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2023-06-28 15:07:00
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