2023-10-17 23:45:49
By Caroline Valetkevitch
NEW YORK (Reuters) – The Nasdaq technology index ended lower, while the Dow Jones and S&P 500 were broadly flat on Tuesday, with Treasury yields rising and chipmaker shares falling after the The Biden administration has said it plans to suspend shipments of advanced artificial intelligence chips to China.
The Philadelphia semiconductor index fell 0.8% and Nvidia shares fell 4.7%, even as the world’s most valuable chipmaker said it does not expect a significant short-term impact on its financial results from the restrictions.
Treasury yields jumped on robust economic data. Higher yields weaken the appeal of stocks, offering investors a comparatively high return to risk-free government bonds.
However, what helped limit the declines were positive corporate earnings from companies like Bank of America, whose shares rose 2.3% following the bank’s quarterly results. The financial sector rose 0.6% and was among the biggest positive highlights of the S&P 500.
“We’ve had some very good earnings from most of the major companies reporting today… but the indices are running into a brick wall as yields rise,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
The Dow Jones had a positive change of 0.04%, to 33,997.65 points. The S&P 500 had a negative change of 0.01%, to 4,373.2 points. The Nasdaq technology index fell 0.25% to 13,533.75 points.
Data released earlier showed that U.S. retail sales rose more than expected in September as households increased motor vehicle purchases and spent more at restaurants and bars. A separate reading showed that production at U.S. factories rose more than expected in September.
#Nasdaq #falls #Treasury #yields #rise #stock #shares #fall..