Wall St trades mixed on Fed tightening fears, Nvidia weighs in

Aug 8 (Reuters) – U.S. stock indexes were mixed on Monday after hit jobs data last week bolstered expectations that the Federal Reserve would clamp down on inflation, while a manufacturer earnings warning of Nvidia chips was another reminder of the slowing US economy.

Stocks rose slightly above the day’s highs as last week’s labor market report was initially seen as a sign that the economy could withstand aggressive interest rate hikes by the Fed to rein in inflation at its highest level in four decades.

Investors are now waiting for July’s consumer price data to be released on Wednesday to assess whether the Fed could ease its fight against inflation a little and pave the way for the economy to grow. Read more

“The CPI data will help confirm whether the Fed’s tightening efforts have been successful in starting to get inflation under control or whether continued Fed tightening is needed,” said Robert Schein, chief investment officer at Blanke Schein. WealthManagement.

The Dow Jones Industrial Average (.DJI) rose 45.37 points, or 0.14%, to 32,848.84, the S&P 500 (.SPX) lost 5.55 points, or 0.13%, to 4,139.64 and the Nasdaq Composite (.IXIC) fell 24.65 points, or 0.19%, to 12,632.90.

The S&P 500 has rebounded 14% from mid-June lows, but signs of lingering inflation could further bolster the Fed’s case for aggressive monetary policy tightening. Read more

Anthony Saglimbene, chief market strategist at Ameriprise in Troy, Michigan, said the market will pull back at some point as traders test the recent rebound.

“If we can sustain those mid-June levels, that would be another sign that this may be more than just a bearish rally and that the market is actually trying to rally and price in a better environment to come,” said Saglimbene.

“Maybe we can go a little higher by the end of the year, but that’s if everything lines up perfectly,” he said. “We are currently fairly valued based on market cross-currents.”

U.S. rate futures have priced a 65.5% chance of a 75 basis point hike at the Fed’s next meeting in September, up from around 41% before labor market data was released. exceed market expectations. FEDWATCH

The information technology sector (.SPLRCT) fell 0.9% after chipmaker Nvidia Corp (NVDA.O) slipped 8.0% as the company said it expects second-quarter revenue to decline 19% from the prior quarter to around $6.7 billion due to weak games.

The Philadelphia SE Semiconductor Index (.SOX) down 2.3%. Read more

The tech-rich Nasdaq (.IXIC) fell slightly in choppy trading after rising 1.6% in early trading.

Compensation for losses on the Nasdaq, the Tesla megacap (TSLA.O) rose 2.0% as the U.S. electric carmaker signed contracts worth about $5 billion to buy battery materials from nickel processing companies in Indonesia, according to a report by CNBC. Read more

Shares of U.S. automakers surged after the U.S. Senate on Sunday passed a $430 billion climate change bill that created a $4,000 tax credit for used electric vehicles and provides billions of dollars in funding for their production. Read more

Rivian Automobile Inc. (RIVN.O) rose 5.75%, Ford Motor Co gained 4.38%, General Motors Co (GM.N) added 5.21% and Lordstown Motors Corp (RIDE.O) advanced by 5.56%.

Signify Health Inc jumped 12.5% ​​following a media report that CVS Health Corp was looking to buy the health technology company.

Palantir Technologies Inc. (PLTR.N) fell 12.5% ​​after the data analytics software company lowered its full-year revenue forecast as the timing of some major government contracts remained uncertain. Read more

Tyson Foods Inc (TSN.N) fell 7.9% after missing quarterly earnings expectations. Read more

Advancing issues outnumbered declining ones on the NYSE by a ratio of 2.57 to 1; on the Nasdaq, a ratio of 1.56 to 1 favored advancers.

The S&P 500 posted eight new 52-week highs and 29 new lows; the Nasdaq Composite recorded 92 new highs and 22 new lows.

Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Shounak Dasgupta and Cynthia Osterman

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