US Stocks Continue to Correct, Inflation Risk Looms Again
The US stock market weakened on Wednesday (July 8th), as rising energy prices made macroeconomic conditions less favorable for the market. The S&P 500 and Nasdaq 100 fell around 0.5%, while the Dow Jones Industrial Average fell 1%.
Market pressure increased after Treasury yields rose following President Donald Trump's decision to declare the ceasefire with Iran no longer in effect. Renewed tensions between the two countries pushed oil prices up and caused investors to reconsider inflation risks.
Market participants are now awaiting the minutes of the June FOMC meeting for clues on the Federal Reserve's readiness to raise interest rates. If inflation is again pressured by energy prices, expectations of tighter monetary policy could potentially strengthen again.
Credit-sensitive sectors also suffered, with shares of JPMorgan and Visa each falling around 2%. Rising yields have made stocks that rely on lower financing costs less attractive to investors.
Pressure also persisted on chipmaker stocks. Investors are concerned that hyperscalers could slow spending on AI infrastructure, while reports that several major Chinese companies are starting to develop chip projects have added to concerns about the market share prospects of global chipmakers.
Shares of Micron, SanDisk, and Intel each fell around 1%. Meanwhile, major technology stocks like MetaTrader, Amazon, and Microsoft fell as much as 2%, indicating that pressure on the AI and technology sectors remains a major drag on Wall Street.
Source: Newsmaker.id
