The broader stock indices came under pressure today with the S&P index, and the NASDAQ index leading the way to the downside. The Dow Industrial Average closed marginally higher. The Russell 2000 of small-cap stocks also fell.
A snapshot of the closing levels shows:
- Dow Industrial Average rose 10.57 points or 0.02% at 44922.39
- S&P index fell -37.70 points or -0.58% at 6411.45
- NASDAQ index fell -314 points or -1.46% at 21314.95
Chip stocks came under pressure with the exception of Intel as the government works out a deal for swapping the Chips Act funds for equity. Intel also sold $2 billion of stock to SoftBank. Despite the dilution, the market is cheering on the confidence by both the government and SoftBank in the company’s fortunes (TBD). Intel’s shares rose 6.97%
Other chips stocks did not fare as well:
- Broadcom -3.55%
- Nvidia -3.55%
- AMD -5.44%
- Taiwan Semiconductor -3.16%
- ASML -0.53%
- Micron -1.51%
The NASDAQ index closed just below its 100-hour moving average at 21333.30 (the moving averages moving modestly to the upside). That is a short-term bearish tilt but tomorrow will be a key from a technical perspective. The 200 hour moving average is currently at 21123.54.
Looking at the different S&P sectors it wasn’t all bad today. In fact 7 of11 sectors gained. Real estate rose by 1.8% and consumer Staples by 1.0%. Utilities rose by 0.83% and Healthcare also advanced nicely with a gain of 0.62%
