Technological continue hit; S&P 500 Struggles To Find Direction By Investing.com

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Tecnológicas continúan golpeadas; S&P 500 lucha por encontrar dirección


©Reuters

By Yasin Ebrahim

Investing.com — The S&P 500 swung between gains and losses on Thursday, hovering near bear market territory as stocks struggled to find their footing after the biggest one-day sell-off since 2020. before.

The fell 0.3% to trade roughly 18% below its recent peak, just below the 20% bear market level. He gave up 0.5%, or 170 points, and he gained 0.3%.

Tech stocks, briefly in the green, suffered as expectations of aggressive rate hikes continued to weigh on investor sentiment.

Apple (NASDAQ:) led the big tech decline, down more than 1%, despite some on Wall Street reassessing their outlook on iPhone demand.

Bank of America raised its iPhone sales estimates to 237 million units from 231 million for Apple’s fiscal 2023, after admitting that previous iPhone estimates may have been “too conservative.”

Cisco (NASDAQ:) was also a big drag on the market, plunging more than 14% after the networking company released quarterly results and guidance that missed Wall Street estimates due to the impact of the China shutdowns. .

“Although the lockdown is expected to be lifted on June 1, it remains uncertain whether improvements can be seen in the short term, considering that ports and airports are expected to be congested as almost all manufacturers will compete for capacity. to ship their products,” Credit Suisse said in a note.

Harley-Davidson (NYSE:) fell nearly 9% after suspending most vehicle assembly and shipping for two weeks after a supplier became embroiled in a regulatory compliance matter.

Utilities and consumer staples, defensive corners of the market, also pushed the broader market lower, with the latter pressured by losses at Clorox (NYSE:), Philip Morris International Inc (NYSE:) and Molson Coors Brewery (NYSE:).

Consumer discretionary stocks, however, stood out from the general market malaise, as travel-related stocks such as Expedia (NASDAQ:), Caesars Entertainment (NASDAQ:) and Booking Holdings (NASDAQ:) rallied as investors expected travel demand to pick up, especially in China, where lockdown measures were eased.

Tesla (NASDAQ:) also underpinned gains in consumer discretionary stocks, despite Wedbush cutting its share price, forecasting a China-led drop in deliveries in the second quarter.

Wedbush cut its price target for Tesla to $1,000 from $1,400, pointing to the Shanghai closures, which have been an “epic disaster” and are expected to modestly affect deliveries in the second quarter, the research firm said.

The economic front did little to assuage fears of a looming slowdown in economic growth, after growth rose more than expected, while the front showed a sharp decline in manufacturing activity.

In other news, under armor (NYSE:) fell nearly 11% after the clothing retailer unexpectedly announced that CEO Patrik Frisk would step down on June 1.

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