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Dollar Tree ( DLTR ) to close nearly 1,000 stores, shares drop
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Intel ( INTC ) down on report Pentagon scraps plan of $2.5 bln chip
grant
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Tesla slides after Wells Fargo rating cut
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Indexes: Dow up 0.38%, S&P off 0.14%, Nasdaq down 0.55%
(Updated at 11:35 a.m. ET/1355 GMT)
By Bansari Mayur Kamdar and Johann M Cherian
March 13 (Reuters) -
The tech-laden Nasdaq fell on Wednesday as rising U.S.
Treasury yields hit market-moving growth stocks, while investors
awaited more data this week for clues on the timing of the
Federal Reserve's interest-rate cuts.
Ten of the 11 major S&P 500 sectors advanced, but the
heavyweight technology sector was down 1.4%.
The yield on treasury notes ticked higher across the board,
pressuring rate-sensitive megacaps such as Nvidia ( NVDA ), Meta
Platforms ( META ) and Apple ( AAPL ), which fell between 3.1%
and 0.9%.
Chip stocks such as Advanced Micro Devices ( AMD ) and
Micron Technology ( MU ) fell over 4% each, steering a 2.6%
decline in the Philadelphia SE Semiconductor Index.
The benchmark S&P 500 climbed to a fresh record high on
Tuesday after slightly hot consumer price data failed to dampen
hopes of rate cuts in the coming months.
Despite inflation being well above the central bank's 2%
target, investors have taken solace in the fact that the Fed
still sees credit conditions easing in 2024, while the economy
remains resilient.
"Traders weren't thrilled with yesterday's U.S. CPI
(Consumer Price Index) report, but weren't despondent either,"
said Thierry Wizman, Global FX & Rates strategist at Macquarie.
The Fed is still likely to ease at mid-year, but next
week's meeting may extend the "hawkish" wait-and-see mode from
central bank Chair Jerome Powell, he said.
While the central bank is widely expected to stay put on
interest rates in March, traders now see a 65% chance of the
first rate cut coming in June, the CME FedWatch Tool showed.
Producer prices data for February is due on Thursday, which
could offer more insights into inflation in the world's largest
economy, ahead of the Fed meeting next week.
Investors are also awaiting the GTC developer conference
that runs from March 18 to 21 for announcements related to
artificial intelligence.
At 11:35 a.m. ET, the Dow Jones Industrial Average
was up 147.19 points, or 0.38%, at 39,152.68, the S&P 500
was down 7.15 points, or 0.14%, at 5,168.12 and the Nasdaq
Composite was down 89.49 points, or 0.55%, at 16,176.15.
Among others, Tesla shed 2.7% after brokerage Wells
Fargo downgraded the electric-vehicle maker to "underweight"
from "equal weight".
Dollar Tree ( DLTR ) slumped 14.3% after the discount chain
store group said it would close nearly 1,000 stores and incurred
a net loss in the previous quarter, hurt by an over-$1 billion
goodwill impairment charge. Peer Dollar General also slid
3.1%.
McDonald's fell 3.0% after its CFO said the
fast-food giant's international sales could fall sequentially in
the current quarter, pressured by the conflict in the Middle
East and demand weakness in China.
Intel ( INTC ) eased 2.7% after a report said the Pentagon
had pulled out of a plan to spend as much as $2.5 billion on a
chip grant to the company.
Crypto stocks such as MicroStrategy ( MSTR ), Marathon
Digital ( MARA ) and Bit Digital ( BTBT ) added between 3.1% and
8.9% as bitcoin hit a fresh record high.
Advancing issues outnumbered decliners by a 2.14-to-1 ratio
on the NYSE and by a 1.46-to-1 ratio on the Nasdaq.
The S&P index recorded 45 new 52-week highs and no new lows,
while the Nasdaq recorded 68 new highs and 77 new lows.