Tech stocks retreat, S&P 500 and Nasdaq lower | Wilnesh News

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Big Tech Profits
this S&P 500 Index and Nasdaq Index Close lower Technology stocks weighed on both major indexes on Tuesday as investors awaited quarterly results from large-cap stocks Yuan, apple and Amazon later this week. The broader market index fell 0.5%, and the Nasdaq fell 1.28%. this Dow Jones Industrial AverageTechnology stocks, which were less heavily invested, rose 0.5%. Nvidia down 7% and Microsoft The stock fell 0.9% in regular trading before reporting earnings after the bell. Ministry of Finance Yields fell, while gold The gains come ahead of this week’s Federal Reserve meeting. US oil prices U.S. oil prices fell on concerns about China’s economy.

Microsoft Cloudy
Microsoft Losses up to 7% after hours trading Results from its cloud business disappointed Wall Street. Cloud revenue grew 29%, but fell below consensus for the first time since 2022. quarterly revenue increase It grew 15% year-on-year to US$64.73 billion, and net profit increased to US$22.04 billion. Microsoft tells employees it will pay Performance-based one-time cash bonus Provide annual bonuses of up to 25% to regular employees.

Starbucks misses
Starbucks‘ Quarterly Revenue fell 1% to $9.11 billion, missing expectations as same-store sales fell for the second consecutive quarter. Net profit fell to $1.05 billion from $1.14 billion a year ago, but was in line with analysts’ expectations. The coffee chain’s same-store sales fell 2% in the U.S. and 14% in China, its second-largest market, as customer traffic and average order value fell due to fierce competition there. Starbucks shares rose 5% in after-hours trading.

Oil worries about China
Worries about China’s economic slowdown intensify U.S. crude oil futures for them lowest level since early June. “China’s economic turmoil, including slow growth and lower crude oil imports, remains the main driver of our market,” Tamas Varga, an analyst at oil broker PVM, wrote in a note on Tuesday. West Texas Intermediate Oil The September contract fell 1.42% to $74.73 a barrel, while Brent The September contract fell 1.44% to $78.63 a barrel.

(PRO) Big rally ahead
Tom Lee, head of research at Fundstrat A series of mostly successful calls In recent months, investors have been advised “Buying Fear” ahead of the Federal Reserve’s interest rate policy announcement on Wednesday.

Starbucks’ plunge in same-store sales in China is just the latest symptom of weakness in the world’s second-largest economy. ProcterThe company also reported quarterly results on Tuesday, saying Organic sales in Greater China fell 9% As market conditions remain subdued.

The challenge for Western companies in China is not just sluggish consumer spending. this The rapid rise of Chinese brands Companies like Temu and Shein pose a serious threat to the appeal of retailers like Amazon and eBay in the U.S. market.

Judging from the latest results from Advanced Micro Devices and the news that Apple has trained its artificial intelligence models on chips designed by Google, Nvidia’s dominance in high-end chips used to train and deploy artificial intelligence systems may be waning.

AMD Beat Wall Street’s revenue and earnings expectationsIt also stated that sales of the data center business, including artificial intelligence chips, increased by 115% year-on-year this quarter, reaching US$2.8 billion.

“We now expect data center GPU revenue to exceed $4.5 billion in 2024, up from our April guidance of $4 billion,” CEO Lisa Su said on a conference call with analysts.

Apple said on Monday that The artificial intelligence models that support the Apple Intelligence artificial intelligence system are pre-trained on processors designed by Google.suggesting that big tech companies are looking for alternatives to Nvidia.

— CNBC’s Annie Palmer, Amelia Lucas and Kif Leswing contributed to this report.